Financial Results of 10th Fiscal Period(Ended October 31, 2008)

Contents

1. Overview of Fund Management

3. Details of the Financial Results

Appendix• Highlights of the 10th Fiscal Period
2• General Overview of the 10th Fiscal Period 3• Summary of Equity Financing (PO)4

• Income Statement• Balance Sheet• Cash Distribution• Interest-Bearing Debts• Unitholders• 11th Fiscal Period (April 2009)
Forecast• List of Property (1)32• List of Property (2)33• Earnings by Property
34• List of End-of-Period Appraisal Value 35• Map of Properties36• Acquisition Channel of Properties
37• Fund Summary
38• Cash Flow Statement39• Unit Price and Market Capitalization 40• Organization of the AssetManagement Company
41

2. Future Management Policies• Real Estate Investment Market

6• Office Leasing Market• J-REIT Market• Future Growth Strategies

7
8
9

11
12
13
14
15
16

4. Fund Management Results• Results of Investment Sector
18• Summary of New Acquisitions
19• New Acquisitions (1) ～ (3)20 ～ 22• (Reference) New Acquisitions
after 11th Fiscal Period
23• Diversification of Tenants
24• Results of Asset Management Sector 25• Increase in Rent of Portfolio
26• End-of-Period Appraisal Value
27• Move-ins and Move-outs
28• End-of-Period Financial Status (1)29• End-of-Period Financial Status (2)30

December 2008

1. Overview of Fund Management

Highlights of the 10th Fiscal Period (May 1, 2008 ~ October 31, 2008)
Performance of the 10th Period (184 business days)

Forecasts
as of June 13, 2008

Comparison
w ith Actual Results(October 2008)

10th Period

Comparison
w ith the Previous Period

Operating Revenues¥13,925 mln+ ¥1,742 mln+ 14.3 ％¥13,353 mln+ ¥572 mln+ 4.3 ％

Operating Profits¥6,932 mln+ ¥1,108 mln+ 19.0 ％¥6,416 mln+ ¥516 mln+ 8.0 ％Net Income¥5,255 mln+ ¥755 mln+ 16.8 ％¥4,989 mln+ ¥266 mln+ 5.3 ％Cash Distribution
per Unit¥17,225 / unit

+ ¥302 / unit

+ 1.8 ％

¥16,350 / unit

+ ¥875 / unit

+ 5.4 ％

Changes in Performance
Net Income

Operating Revenues

Cash Distribution per Unit(¥mln)(¥mln)(¥)

6, 00016,00014,537
13,92514,00012,183
11,968
11,09010,7399,810

12,00010,0005,255

5, 0004,466 4,486

6,656

7,106

4,499

18,00017,33017,225
16,923
16,750 16,918
15,905
15,63815,15014,520
14,11416,000

4,229
3,596

4, 000

3,484

8,641

8,000

5,287

14,0003, 0002,606 2,681

6,000
4,531

2, 0004,000

12,000
1,526

10,273

2,000
Apr.
200 4

Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr.
200 4 200 5 200 5 200 6 200 6 200 7 200 7 200 8 200 8 200 9(Forecast)

1. Ov erview of Fund Management

1, 000

Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr.
200 4 200 4 200 5 200 5 200 6 200 6 200 7 200 7 200 8 200 8 200 9(Forecast)

10,000Apr.
200 4

Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr.
200 4 200 5 200 5 200 6 200 6 200 7 200 7 200 8 200 8 200 9(Forecast)2General Overview of the 10th Fiscal Period

Performance

Steady External Growth

Equity Financing ofapprox. ¥28.7 blnz Secure property
Activities

acquisition capacity

z Enhance BPS
z Maintainconservative
financial strategy(LTV ：46.8％→38.8％)

Backgrounds

1. Ov erview of Fund Management

Sustainable Growth of Operating Revenues, Operating Profits, andCash Distribution per unit for 10 Consecutive periods in a row

Acquisitions in

Maintain Stable Portfolio

Diversify Funding Sources

Favorable Investment

Profitability

and Secure Conservative

Opportunities

Financial Strategies

zShinjuku Sanshin Bldg.
zIwamoto-c ho T oyo Bldg.
zNomur a Shibuya Dogenzaka Bldg.
zNomur a Nishi-Umeda Bldg., etc.

zMaintain high occupancy rates

Inv ested in 9 properties,
total of ¥44.8 bln, locatedmainly in Tokyo Metropolitanarea, utilizing information
pipeline from the sponsorzAv erage portfolio rents

Less competitive market
in property sales

97.3％ (End of 10th Period)＋0.4％ (Comparison withthe previous period)

Peak-out of officeleasing market

zIssued Commercial Paper (CP)aggregate amount of ¥15 bln
zIncrease in number of
institutional lenders
zLTV at the end of
10th period ：45.3％

Stricter lending standards
imposed by financial
institutions

3

Summary of Equity Financing (PO)
Changes in Book Value per Unit

Summary of the Public Offering（¥）
700,00 0

Aggregate Issue Price
Aggregate Issue Price¥29,672¥29,672mln
mln

Aggregate Amount Raised
Aggregate Amount Raised

605,499

600,00 0¥28,688¥28,688mln
mln

557,004
500,00 0492,820

513,266

513,672

Oct.
2004

Apr.
2005

606,315

606,510

606,488622,553

557,492【Primary Offering】
Number of Investment Units Issued ：Offer Price ：37,000 units（Over-Allotment 2,220 units separately）¥756,560/unit

Issue Value ：Total Amount of Offer Price ：¥731,470/unit¥27,992 mln

Total Amount of Issue Value ：¥27,064 mln

400,00 0

300,00 0
Apr.
2004

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

After PO*

Changes in Loan-to-Value（%）

【Third-Party Allotment】 （ accompany Over-Allotment）
Number of Investment Units Issued ：2,220 units

Total Amount of Issue Value ：¥1,623 mln

70
60
50
40

【Schedule】
Date of the Resolution ：Date of the Determination of Conditions ：May 8
May 20

Payment Date （PO） ：May 27

Payment Date （TPA） ：June 24

46.8

46.4
41.2

44.7
38.9

37.2

41.2

42.9

38.8

36.8

30
20
10
0
Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

After PO*

*Probable numbers considering repayment of existing borrowings with increased capital of public offering andthird-party allotment, etc.

1. Ov erview of Fund Management42. Future Management Policies

Real Estate Investment Market

Current

Forecast• Increase in property sale due to deterioration inearnings of corporations and problems of realestate players in refinancing• Decrease in regional properties for sale due tolack of buyers, while Increase in central Tokyo
properties meeting our investment criteria• Corporations and real estate funds continue to sell properties
in the market due to the overall economic slowdown, credit
crunch, and etc.
• On the other hand, real estate players keep their acquisition
strategies prudently

Ongoing opportunities to acquire prime
properties in central Tokyo

NOF’’s Position
NOF

Slight decrease in numberof qualified properties, withthe ratio of central Tokyo
properties increasing*Proportion of Central Tokyo properties
increased to over 50% in the 10th fiscal
period from 30% in the 9th fiscal period

2. Future Management Policies< Volume of Office Building Sales Information >* excludes other purpose properties such as residential, commercial, and logistics

10th Fiscal Period: 159
9th Fiscal Period: 182•

Number of properties
complied w ith investment
criteria: 128

・ Number of properties compliedw ith investment criteria : 114(Number of properties applied
due diligence: 26)

6

Office Leasing Market

Current

Forecast• Vacancy rates increasing across Japan inaccordance with economic slowdown• Decelerating trends of office demand• Decrease in asking rents and longer vacant period
become apparent• Vacant floor inventories increasing due to the gap
between demand and supply in areas withexcessive supply• Selective office demand as tenants get more costconscious

Precise understanding of subsub -markets andflexible leasing strategies are crucial

NOF’’s Position
NOF
・ Maintained stable occupancy rates bypreserving good relationship with tenants
・ Secured higher average rents byimplementing for rents revisions inadvance lease renewal negotiationsz Occupancy Rate as of the End of 10th Fiscal Period: 97.3%
・ Central Tokyo・ Suburban Tokyo・ Other Cities: 97.8%: 99.0%: 96.1%z Growth Rate in Rents
・ At the time of rent revisions: 6.4% * bas ed on 42 pr operties with r ent increas e in

Maintain stable portfolio income
and expenditure

2. Future Management Policies

10th period・ At the time of move-in and move-out: 3.8%
* bas ed on 15 properties with tenant turnovers in 10th period

7

J-REIT Market

Current

Forecast• Ongoing unit price adjustment due to the turmoil incapital markets• Seek stable capital structure through change ofsponsors, third party allotments, and so on.

• Further polarization of unit price from credit crunch
including sponsors• Ease credit crunch by the government’s emergency
financial relief program for J-REITs.

• Sell units for cash pricing based on supply anddemand, not on valuations

Gradually regain confidence from themarket

NOF’’s Position
NOF
・ Maintain conservative financial policy
・ Decrease in unit price(Unit price<Book value (BPS))

No concerns over debt financing;timing of the next public offering to be
determined cautiously
2. Future Management Policies

z Equity: Execution of 4th PO (First in 2 years)• Over ¥55 bln. new investment completed withacquisition capacityz Debt: ¥24 bln. refinanced in the 10th Fiscal
Period• Smooth refinancing under favorable terms

8Future Growth Strategies
Continuous External Growth

Increase in Portfolio Profitability

Mid- to long term growth strategy

Mid- to long term growth strategy

z Promote diversification of tenant and asset through fund expansion
expansion(Further stabilization of portfolio income）
income）

z

Increase average rents and maintain occupancy ratez

Control budgets for repair and other expenses（¥bl n）
6 00

7 0.0%
Total As sets

110.0

Mid-term Goal
6 0.0%¥50 0bl n

Ratio of Top 3 Pr ope rtie s
5 00

（¥）
20,000

Ratio of Top 3 Te nan ts

Di stri bution per Unit
Ch anges in Rents (15 properites at 1st period)

5 0.0%
4 00

105.0

16,0004 0.0%

3 00
3 0.0%
2 00
2 0.0%
1 00

12,000

100.0

100.0

1 0.0%

0
Apr.
200 4

Oct.
200 4

Apr.
200 5

Oct.
200 5

0 .0 %Apr.
200 6

Oct. Apr.
200 6 200 7

Oct.
200 7

Apr.
2008

Oct.
200 8

Short-term management strategy• Restraint in new investments• Consider portfolio quality enhancement
via property replacements

2. Future Management Policies

8,000

Apr.
200 4

Oct.
200 4

Apr.
200 5

Oct.
200 5

Apr.
200 6

Oct.
200 6

Apr.
200 7

Oct.
200 7

Apr.
200 8

Oct.
200 8

95.0

Short-term management strategy• Flexible rental increase negotiations andminimizing vacancy down-time• Strict budget control for repair and otherexpenses9

3. Details of the Financial Results

R en ta l Busin ess Re venu es
R ental B usin ess Expe nses

Operating Profits

Operating Revenues
Rental business revenues
Rental revenues
Common area charges
Other rental business revenues
Monthly parking revenues
Incidental income
Other rental revenues
Miscellaneous revenues
Total Rental Business Revenues

Operating Expenses
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Tot al Rent al Business Expenses

Asset management fees
Selling and administrative expenses

Non-Operating Profits

Current Profits

Income Statement

Rental Profits
Operating Profits
Non-Operating Revenues
Other non-operating revenues
Non-Operating Expenses
Interest expenses
Interest expenses on short-term bonds

Interest expenses on bonds
Amortization of bond issuance costs
Loan arrangement fees
Investment unit issuance costs
Other non-operating expenses
Non-Operating Profits
Current Profits
Income before income taxes
Corporate, local and enterprise taxes
Tax adjustment
Net Income
Retained earnings brought forward
Retained earnings at end of period

9th Fiscal Period

10th Fiscal Period

Nov. 1, 2007 - Apr. 30, 2008(¥000)(%)

May. 1, 2 008 - Oct. 31, 2008

12,183,126
11,057,640
8,991,313
2,066,326
1,125,486
255,389
795,927
70,574
3,595
12,183,126
6,359,680
1,260,581
941,567
790,510
23,074403,143
192,242
1,601,961
5,213,082
990,994
155,6026,970,044
5,823,446
86,67786,677
1,409,169
743,4443,052
428,974
32,295
94,520‐106,883▲ 1,322,492
4,500,953
4,500,953
1,051
▲ 22
4,499,924
76
4,500,000

13,925,429
12,493,338
10,150,766
2,342,571
1,432,090
302,604
1,056,710
68,4004,375
13,925,429
6,993,077
1,387,207
971,039
1,084,225
26,729320,218
208,367
1,793,087
5,790,875
1,025,096
177,105
8,134,553
6,932,351
77,14877,1481,752,668
916,962
51,378432,525
38,490
119,318
50,788143,204▲ 1,675,520
5,256,831
5,256,831
1,032
05,255,797
124
5,255,922

100.0
90.8
73.8
17.0
9.2
2.1
6.5
0.6
0.0
100.0
52.2
10.3
7.7
6.5
0.2
3.3
1.6
13.1
42.8
8.1
1.3
57.2
47.8
0.7
0.7
11.6
6.1
0.0
3.5
0.3
0.8
‐
0.9
▲ 10.9
36.9
36.9
0.0
0.0
36.9
0.0
36.9

(¥000)

3. Details of the Financial Results

(%)

100.0
89.7
72.9
16.8
10.3
2.2
7.6
0.5
0.0
100.0
50.2
10.0
7.0
7.8
0.2
2.3
1.5
12.9
41.6
7.4
1.3
58.4
49.8
0.6
0.6
12.6
6.6
0.4
3.1
0.3
0.9
0.4
1.0
▲ 12.0
37.7
37.7
0.0
0.0
37.7
0.0
37.7

Rental Business Revenues
The total number of properties in the portf olio at the 10th period has
become 46 as a result of new acquisition of 9 properties:
Shinjuku Sanshin Bldg, Central Kyobashi Bldg, Central ShintomichoBldg, Sunworld Y otsuy a Bldg, Toshin Meguro Bldg, Iwamoto-cho Toy oBldg, EME Hakata Ekimae Bldg, Nomura Shibuy a Dogenzaka Bldg,
and Nomura Nishi-Umeda Bldg.
Occupancy rate for the 10th period (October 2008) was 97.3%, down
0.3% f rom 97.6% for the 9th period (April 2008).

Taxes and Duties
Property taxes, urban planning taxes and other duties f or the 10th
period were charged on the 34 properties out of the total 46 properties
held at the end of the 10th period.

Repairs and Maintenances
In addition to cost of repair of ¥320 mln, there was capital expenditureof ¥1,552 mln, of which ¥619 mln was an initial reserv e.

Rental Profits: ¥8,134 mln(+ ¥1,164 mln f rom the previous period)
Additional rev enues from the newly acquired 9 property: + ¥492 mln
Increase in revenues f rom the existing 37 properties:+ ¥671 mln

Incidental Revenues :Revenues recei ved as utility c harges, charges forusage of facility and signboard, etc.
Other Rental Revenues : Hourly par king c harges, etc.
Miscellaneous R evenues: Ground rents, etc .
Other Expenses:
Trust fees, c ommissions, other maintenanc e fees , etc.
Selling and administrative: Custodian, Admi nistrati ve s er vice, and auditing fees,
expens es
etc.
Non-operating Expens es: Cost of restitution in i ntegrum, etc

11Balance Sheet
Assets
9th Fiscal Pe riod

1 0th Fiscal Perio d

36,353,211
15,657,837

10.3
4.4

39,129,145
16,730,725

9.7
4.2

19 ,9 25 ,7 84
7 69 ,5 89
3 17 ,2 39 ,7 20
3 16 ,9 99 ,3 68
46 ,8 55 ,0 80
15 ,5 78 ,4 15
31 ,2 76 ,6 64
2 70 ,1 07 ,3 73
79 ,7 38 ,3 10
1 90 ,3 69 ,0 63
36 ,9 15
36 ,9 15
1 ,7 25

5 .6
0 .2
89 .7
89 .6
13 .2
4 .4
8 .8
76 .4
22 .5
53 .8
0 .0
0 .0
0 .0

1 ,7 25
2 38 ,6 26
2 11 ,2 50
27 ,3 76
1 37 ,8 18
1 37 ,8 18
3 53 ,7 30 ,7 49

0 .0
0 .1
0 .1
0 .0
0 .0
0 .0
1 00 .0

21 ,8 37 ,1 01
5 61 ,3 18
3 62 ,4 51 ,6 62
3 60 ,0 78 ,2 35
58 ,2 61 ,5 03
17 ,8 22 ,4 63
40 ,4 39 ,0 39
3 01 ,7 74 ,5 29
84 ,9 69 ,0 40
2 16 ,8 05 ,4 89
42 ,2 0242 ,2 02
1 ,9 04 ,3 97
1 ,9 00 ,9 04
3 ,4 92
4 69 ,0 29
4 11 ,3 00
57 ,7 29
1 03 ,4 38
1 03 ,4 38
4 01 ,6 84 ,2 46

5 .4
0 .1
90 .2
89 .6
14 .5
4 .4
10 .1
75 .1
21 .2
54 .0
0 .0
0 .0
0 .5
0 .5
0 .0
0 .1
0 .1
0 .0
0 .0
0 .0
1 00 .0

Asset sas of Apr. 3 0, 2 00 8(¥0 00)(%)

Curre nt As sets
Cas h and c ash eq ui vale nts
Cas h and c ash eq ui vale nts in trust
Othe r curren t a ssets
Fi xed Asse ts
Ta ng ibl e asse ts
Prope rties
Bu il din gs
L an ds
Prope rties in tru st
Bu il din gs
L an ds
Othe r ta ngi ble a ssets
Othe r tan gib le a ssets
In ta ng ibl e asse ts
Le a se h ol ds
Tru st an d othe r i ntan gib le a ssets
In vestmen ts a nd oth er asse ts
Securi ty d epo sits
Othe r In vestments an d othe r a ssets
Deferre d Assets
Iss uin g cost of co rpo ratio n bon ds
To ta l As se ts‐

a s o f Oct. 31 , 2 008(¥00 0)(%)‐

Liabilities and Net Assets
9 th Fiscal Period

10 th Fiscal Period

Net Assets

Liabilities

as of Apr. 30, 2008
( ¥000)(%)

as of Oct. 31, 2008
( ¥000)(%)

Current Liabil ities
Trade acc ounts payabl e
Short-term bonds
Short-term debt
Long-term debt to be repaid withi n 1 year
Other accounts payable
Rent rec eived in advance
Other current l iabil ities
Fixed Liabi liti es
Corporati on bonds
Long-term debt
Securi ty deposits
Securi ty deposits in trust
O ther Fi xed Liabili ties
T otal Li abi li ties

58,957,473
737,287

16.7
0.2

19,984,303
14,700,000
19,000,000
2,407,991
2,100,766
27,125133,506,081
44,500,000
67,500,000
1,944,082
19,561,998
192,463,555

5.6
4.2
5.4
0.7
0.6
0.0
37.7
12.6
19.1
0.5
5.5
54.4

Unitholders' Equity

161,267,194

45.6

190,711,368

47.5

156,767,193
4,500,000
161,267,194
353,730,749

44.3
1.3
45.6
100.0

185,455,446
5,255,922
190,711,368
401,684,246

46.2
1.3
47.5
100.0

Unitholders' capi tal
Retai ned earnings
Total Net A ss ets
T otal Li abi li ties and Net As sets-

54,544,993
821,170
‐

13.6
0.2
‐

34,100,000
15,000,000
2,242,039
2,366,636
15,147
156,427,883
44,500,000
88,500,000
2,641,643
20,763,747
22,493210,972,877

8.5
3.7
0.6
0.6
0.0
38.9
11.1
22.0
0.7
5.2
0.0
52.5

3. Details of the Financial Results

Cash and Cash Equivalents
Deposits in own name
Equivalent to sec urity deposits rec eived
Equivalent to res erved c apital expenditure
Others(¥ mln)16,7302,883
2,313
11,533

Deposits in trus t
Equivalent to sec urity deposits rec eived
Equivalent to res erved c apital expenditures
Others21,837
14,381
186
7,268

Tangible Assets(¥ ml n)Acquisition Accumulated Depreciati on for End-of-term
pricedepreciati on c urrent ter mbook value
Properties

373,165

13,086(1,793)360,078

Buildings in trust, etc.

97,432

12,420(1,487)85,011Lands in trus t

216,805--

216,805

Buildings, etc.

18,488666(305)

17,822

Lands

40,439--40,439Debts
Balance of i nter est-bearing debts¥182,100ml n

S/T debts + L/T debts + Corp bonds

Interest-bearing debts ratio

Long-term interest-bearing debt rati oTotal assets
L/T debts + Corp bonds
T otal debts

45.3%

73.0%

12

Cash Distribution

Cash Distribution

Item

9th Fiscal Period

10th Fiscal Period

from Nov. 1, 2007
to Apr. 30, 2008

from May. 1, 2008
to Oct. 31, 2008

Retained Earnings(¥000)

4,500,000

5,255,922

Cash Distribution(¥000)

4,499,876

5,255,743(¥)

16,923

17,225

124

178

Cash Distribution per Unit

Balance Carried Forward (¥000)z Cash Distribution
Cash distribution for the 10th fiscal period was decided to be approxi matel y all of
retained ear nings for the period, with pay-out to total outstanding number of units asof the period-end of 305,123; res ulting in c ash distribution per unit of ¥17,225.

Comparison with Forecasts
ForecastsItemannounced onJune 13, 2008

Actual Resultsz Difference between Actual Results and Forecasts

Diff erence

10t h Fiscal Period (amount)(%)

Operating Revenues(¥ mln)13,353

13,925572

4.3

Current Profits(¥ mln)

4,990

5,256

266

5.3

Net I ncome(¥ mln)

4,989

5,255

266

5.3

(¥)

16,35017,225875

5.4

Cash Distribut ion per Unit

3.Details of the Financial ResultszOperating Revenues
Incremental revenues brought by acquisition of 9 properties and other 37 bldgs:¥572 mlnz

Current Pr ofits
Differenc e in r ental business expenses : ¥15 ml n
Increase in non-operating expens es from interes t on borrowings: ▲¥327 mln

13Interest--Bearing Debts
Interest
As of October 31, 2008
AmountType of Asset

Interest Rate (p.a.)

Repayment Date

5 fi nan insti¥8,000 ml n

Fixed (Note 1)

1.66750％ (Weighted average after i nterest rate swap)

Dec. 8, 2008

4 fi nan insti¥5,000 ml n

Fixed

1.51625%

Dec. 8, 2008

5 fi nan insti¥2,300 ml n

Floati ng

1.29250%

Dec. 24, 2008

LenderShort-term debt
(Incl udi ng long-term
debt to be paid wi thina year)Total short-term debt

5 fi nan insti¥7,000 ml n

Floati ng

1.29250%

Dec. 24, 2008

2 fi nan insti¥2,000 ml n

Fixed (Note 3)

1.19000％ (Weighted average after i nterest rate swap)

Feb. 26, 2009

5 fi nan insti¥15,000 ml n

Floati ng

1.43500%

Jun. 24, 2009

5 fi nan insti¥9,800 ml n

Floati ng

1.33500%

Jun. 25, 2009

13 finan i nsti

¥49,100 ml n

―

―

―

1 fi nan insti¥3,000 ml n

Fixed (Note 2)

1.77500％ (Weighted average after i nterest rate swap)

Feb. 26, 2010

1 fi nan insti¥1,000 ml n

Fixed

1.50625%

Feb. 26, 2010

3 fi nan insti¥2,500 ml n

Fixed

1.48375%

Feb. 26, 2010

2 fi nan insti¥2,000 ml n

Fixed

1.65500%

Aug. 26, 2010

4 fi nan insti¥4,000 ml n

Floati ng

1.24667%

Aug. 26, 2010

5 fi nan insti¥7,500 ml n

Fixed (Note 3)

1.68000％ (Weighted average after i nterest rate swap)

Feb. 26, 2011

6 fi nan insti¥8,500 ml n

Fixed (Note 6)

1.43200％ (Weighted average after i nterest rate swap)

Jun. 10, 2011

5 fi nan insti¥4,500 ml n

Fixed (Note 8)

1.44800％ (Weighted average after i nterest rate swap)

Aug. 25, 2011

Remarks

Unsecured /Unguaranteed―

3 fi nan insti¥4,000 ml n

Fixed (Note 5)

1.63825％ (Weighted average after i nterest rate swap)

Aug. 26, 2011

2 fi nan insti¥2,000 ml n

Fixed (Note 10)1.43950％ (Weighted average after i nterest rate swap)

Sep. 25, 2011

7 fi nan insti¥11,000 ml n

Fixed (Note 4)

1.89764％ (Weighted average after i nterest rate swap)

Feb. 26, 2012

5 fi nan insti¥5,000 ml n

Fixed

1.43750%

Aug. 26, 2012

1 fi nan insti¥1,000 ml n

Fixed

1.53625%

Aug. 26, 2012

5 fi nan insti¥7,500 ml n

Fixed (Note 7)

1.46000％ (Weighted average after i nterest rate swap)

Aug. 26, 2012

2 fi nan insti¥2,000 ml n

Fixed (Note 11)

1.61150％ (Weighted average after i nterest rate swap)

Sep. 25, 2012

3 fi nan insti¥5,000 ml n

Fixed (Note 9)

1.87200％ (Weighted average after i nterest rate swap)

Dec. 27, 2012

1 fi nan insti¥1,000 ml n

Fixed

1.75250%

Feb. 26, 2013

1 fi nan insti¥2,000 ml n

Fixed

1.99250%

Feb. 26, 2013

3 fi nan insti¥4,000 ml n

Fixed

1.98000%

Mar. 19, 2014

1 fi nan insti¥3,000 ml n

Fixed

1.91875%

Feb. 26, 2015

3 fi nan insti¥8,000 ml n

Fixed

2.31750%

Jun. 24, 2015

Total l ong-term debt

28 finan i nsti

¥88,500 ml n

―

―

―

―

Total debt

29 finan i nsti

¥ 137,600 ml n

―

―

―

―

1st series corp bondPrivate placement¥5,000 ml n

Fixed

1.85%

Mar. 16, 2015

2nd series corp bond Private placement¥5,000 ml n

Fixed

2.47%

Mar. 16, 2020

3rd seri es corp bondPubl ic offering¥10,000 ml n

Fixed

1.19%

Nov. 29, 2010

4th series corp bondPubl ic offering¥10,000 ml n

Fixed

2.05%

Nov. 30, 2015

5th series corp bondPubl ic offering¥5,000 ml n

Fixed

1.61%

Mar. 19, 2012

6th series corp bondPubl ic offering¥5,000 ml n

Fixed

2.21%

Mar. 17, 2017

7th series corp bondPubl ic offering¥4,500 ml n

Fixed

2.90%

Mar. 17, 2028

Total corporati on bond―

¥44,500 ml n

―

―

―

―

Grand total

29 finan i nsti

¥ 182,100 ml n

―

―

―

―

Long-term debt

(Note 1) Fixed by interest rate swap from Dec. 8, 2003 (Note 4) Fixed by interest rate swap from Dec. 8, 2006

Unsecured /Unguaranteed

Unsecured /Unguaranteed(Note 7) Fixed by interest rate swap from Feb. 26, 2008 (Note 10) Fixed by interest rate swap from Sep. 25, 2008

(Note 2) Fixed by interest rate swap from May. 27, 2004(Note 5) Fixed by interest rate swap from Mar. 19, 2007 (Note 8) Fixed by interest rate swap from Apr. 25, 2008 (Note 11) Fixed by interest rate swap from Sep. 25, 2008
(Note 3) Fixed by interest rate swap from Feb. 27, 2006(Note 6) Fixed by interest rate swap from Dec. 10, 2007 (Note 9) Fixed by interest rate swap from Jun. 27, 2008

3.Details of the Financial Results

14Unitholders
Number of Unitholders

Breakdown of Financial Institutions

Financial Institutions
Other Domestic Corporations
Foreign Corporations

Individuals
10,506 （94.5％）

156 （1.4％）
184 （1.7％）
274 （2.5％）(Units)9th Period

9th Period（Apr. 2008）
11,120Unitholders
Financial Institutions
Other Domestic Corporations
Foreign Corporations

Individuals
11,735 （94.6％）

168 （1.4％）
208 （1.7％）295 （2.4％）

10th Period（Oct. 2008）
12,404
Unitholders

10th PeriodBanks37,11814.0%

38,510

12.6%

Trust Banks

83,22431.3%

102,040

33.4%

Life Insurance Companies

7,487

2.8%

10,863

3.6%

Non-Life Insurance Companies

5,030

1.9%

5,146

1.7%

Other Financial Institutions

18,8207.1%

15,723

5.2%

151,67957.0%

172,282

56.5%

Units

Ratio

1 NikkoCiti Trust and Banking Corporation

27,428

8.99%

2 Trust & Custody Services Bank, Ltd.

21,5077.05%

3 Japan Trustee Services Bank, Ltd.

20,374

6.68%

4 The Master Trust Bank of Japan, Ltd.

19,790

6.49%

5 Nomura Real Estate Development Co., Ltd.

15,287

5.01%

6 The Nomura Trust and Banking Co., Ltd.

8,290

2.72%

7 Kawasaki Gakuen

7,000

2.29%

8 North Pacific Bank,Ltd.

5,926

1.94%

9 The Bank of IKEDA, Ltd.

5,669

1.86%

10 National Mu tual Insurance Federation of Agricultu al Cooperatives

4,958

1.62%

Top 10 Unitholders
0%

25%

50%

75%

Number of Investment Units

9 th Peri od（Ap r. 2 008 ）Individuals
25,670 units（9.7％）

Financial Institutions
151,679 units（57.0％）

265,903
Units

Financial Institutions
172,282 units（56.5％）

Individuals
30,062 units（9.9％）

1 0th Peri od（ Oct. 2 008 ）

305,123
Units

Other Domestic
Corporations
25,363 units（9.5％）

Other Domestic
Corporations
28,918 units（9.5％）

Unitholders

100%

Foreign
Corporations
63,191units（23.8％）

Foreign
Corporations
73,861units（24.2％）

Total
0%

25%

50%

75%

100%

3.Details of the Financial Results

136,229 44.65%(The ratio of Top 10 Unitholders for the 9th Period: 44.08%)

15

11th
11
th Fiscal Period (April 2009) Forecast

Rental business revenues
Other rental business revenues
Total rental business revenues
Property management costs
Taxes and duties
Utility expenses
Insurance expenses
Repairs and maintenances
Other expenses
Depreciation
Total rental business expenses
Rental business profits
Asset management fees
Selling and administrative expenses

Operating Profits
Non-operating revenues
Non-operating expenses
Non-operating Profits
Current Profits
Income before income taxes
Corporate, local and enterprise taxes
Tax adjustment
Net Income
Retained earnings brought forward
Retained earnings at end of peri od
Outstanding units at period-end (unit)
Cash distribution per unit (¥)

10th Period

11th Period
Forecasts(¥ml n)(¥mln)

Difference(¥mln)(%)

12,493
1,432
13,925
1,387
971
1,084
26
320
208
1,793
5,790
8,134
1,025
177
6,932
77
1,752
▲1,675
5,256
5,256
1
0
5,255
0
5,255

13,1501,386
14,537
1,593
1,023
1,015
30
468
226
1,861
6,220
8,316
1,156
199
6,960
30
1,702
▲1,672
5,288
5,288
1
0
5,287
0
5,287

657
▲45
611
206
52
▲68
3
148
18
68
429
182
131
22
28
▲ 47
▲ 50
3
31
31
0
0
31
0
31

5.3
▲3.2
4.4
14.9
5.4
▲6.3
14.1
46.4
8.9
3.8
7.4
2.2
12.8
12.6
0.4
▲61.1
▲2.9
▲0.2
0.6
0.6
▲3.1
0.6
43.5
0.6

305,123
17,225305,123
17,330

0
105

0.0
0.6

3. Details of the Financial Results

Rental Business Revenues
Forecasts were made f or the 11th period on the basis that the
number of properties under management would remain to be 46,
plus, the acquisition of 2 properties, PMO Nihonbashi Honcho
and Nomura Sapporo Building on Nov ember, 2008, and theacquisition of Tenjin-Minami Building on March, 2009(scheduled), the total of 49 properties without any new
acquisition or sale.

Taxes and Duties
Property taxes, urban planning taxes and other duties f or the
11th period were estimated on the basis that 39 properties out of
46 properties which were held at the end of the 10th period andnewly acquired 3 properties (scheduled) in 11th period, would betaxable for that period.

Other Rental Business Rev enues:
Rev enues received as monthly parking charges,
utility charges, charges for usage of facility, etc.
Other Expenses: Trust f ees, commissions, other maintenance f ees,
etc.
Selling and Administrativ e Expenses:
Custodian, administrativ e service, and auditingf ees, etc.
Non-operating Expenses:
Interest costs, Interest expenses on bonds,
amortization of bond issuance costs, etc.

16

4. Fund Management Results

Results of Investment Sector

Changes in Total Portfolio (by Acquisition Price)(¥ bln)
400

350

259.1
240.8

250
200
150
100

362.2

Shinjuku Nomura Bldg

300

127.2
104.2

184.6
151.5

Diversification of Portfolio

292.4
282.8

372.5

317.4

210.1

*Based on Acquisition PriceCentral Tokyo

Other Cities

57.2%

30.3%

Suburban Toky o

50
0z Diversification by Location

25.6%
18.4%14.9%
16.1%
14.9%
13.2% 10.4%
37.2%30.4%
30.4%
37.2%
25.6%
21.0% 21.0%
18.4% 16.1%
13.7%
13.2%13.7%
12.2% 10.7%
Dec. 2003
at Listing

Apr. 2005
3rd Period

Oct. 2006
6th Period

Apr. 2008
9th Period

12.6%(Ref.)
Nov 5. 2008z Diversification by Property (Top 10 and Other Properties)

10th Period Performance Results

Shinjuku Nomura Bl dg 10.7%
JAL Bldg

Acquisition of 9 properties (¥44.8 billion)

Other 36
Buildings
45.1%

Utilization of Sponsor’s
information pipeline
3.2% Secom Medical Bldg

Total asset exceeded ¥360 billion

3.3% NOF Shibuya Koen- dori Bldg

9.1%

Omron Kyoto
Center Bldg 6.5%
NOF Nihonbashi
Honcho Bl dg 5.7%
SORA Shin-Osaka 21 5.3%
Tennozu Park Side Bldg 4.1%

3.4% Shinjuku Sanshin Bldg
NOF Midosuji Bldg

4.Fund Management Results

3.6%

18

Summary of New Acquisitions
List of Properties Acquired during 10th Fiscal Period
Property Name

Location

Shinjuku Sanshin Bldg

Shibuya- ku,
Tokyo

Nomur a Shibuya Dogenzaka Bldg
Iwamoto-cho Toyo Bldg
Central Kyobashi Bldg
Central Shintomicho Bldg
Sunworld Yotsuya Bldg
Toshin Meguro Bl dg
Nomur a Nishi-Umeda Bldg
EME Hakata Ekimae Bldg
(Acquired in 11th Fiscal Period)
PMO Nihonbashi Honcho(Acquired in 11th Fiscal Period)
Nomur a Sapoporo Bl dg(Ref.) NOF Tenjin-Minami Bl dg(Scheduled Acquisition)(Ref.) NOF Nagoya Fushi mi Bldg
(Scheduled Acquisition)(Note 3)

Shibuya- ku,Tokyo
Chiyoda-ku,
Tokyo
Chuo- ku,Tokyo
Chuo- ku,Tokyo
Shinjuku- ku,TokyoMeguro-ku,
TokyoKita- ku,
Osaka City
Hakata-ku,
Fukuoka City
Chuo- ku,Tokyo
Kita- ku,
Sappor o City
Chuo- ku,
Fukuoka City
Naka-ku,
Nagoya City

Completion Floors(Ground)

Total Floor
Space(㎡）Space(㎡）

Occupancy
Rate(Note 1)# ofTenants

Acquisition
Date

Acquisition
Price
Cap Rate
(¥mln
mln))

Seller1974. 489,044.04

94.8%

15

2008. 6

12,3004.7%

1999. 394,463.86

100.0%

6

2008. 9

7,660

4.1%

1993. 695,367.28

100.0%

7

2008. 6

6,020

4.4%

1998. 982,303.96

100.0%

92008. 6

2,550

4.9%

DS Investment YK

1990. 38

2,777.61

100.0%

7

2008. 6

1,750

5.7%

DS Investment YK

1991. 116

2,367.51

100.0%

1

2008. 6778

6.1%

DS Investment YK

1989. 991,595.27

100.0%

1

2008. 6

1,340

5.3%

DS Investment YK

1993. 612

8,036.71

100.0%

11

2008. 9

5,660

4.8%

Nomur a Real Estate
Development Co., Ltd.

1983. 7

11

10,961.34

93.5%

35

2008. 6

6,750

4.6%

GE Real Estate Corporation

2008. 693,507.37

75.0%

1(5)
(Note 4)2008. 11

5,000

4.5%

Nomur a Real Estate
Development Co., Ltd.

2008. 710

9,603.81

78.7%

5

2008. 11

5,300

5.8%

2008. 2

10

4,603.61－－(2008. 12 –2009. 3)

3,925
(Note 2)

4.7%

2009. 10
(Scheduled)

11

5,216.89－－(2009. 10)

4,050

4.4%

(Extensio n 199 2.7)

DS Investment YK
Nomur a Real Estate
Development Co., Ltd.
Metropolitan
Investment 3 GK

Nomur a Real Estate
Development Co., Ltd.
Global Investment
Partners I LLC.
Shimizu Corporation(Note 1) Each Occupancy Rate indicates as of October 31, 2008, however, the Occupancy Rates of PMO Nihonbashi Honcho and Nomura Sapporo Building are as of Nov. 5, 2008, theacquisition date of those.
(Note 2) The Fund will acquire the Property on either December 26, 2008 or March 27, 2009 dependi ng on the seller’s leasing status (occupancy rates and average rents, etc.) at each timing,
according to the agreement on purchase and sal e of the trust beneficial i nter est. As the Property’s profitability may var y upon l easing status, the acquisition price will be determinedwithi n the above- mentioned range.
(Note 3) The buildi ng name is tentati ve.
(Note 4)“1” indicates NRED as a master lessee, “5” indicates the total number of end tenants and NRED as a tenant of the ninth fl oor.

4.Fund Management Results

19New Acquisitions (1)Nomura Shibuya Dogenzaka Building

Shinjuku Sanshin Building

LocationFloor
Ty pe ofOwnership
Acquisition
Price
Date of
Acquisition
Seller【 Features
Features】】
・Located 4 minutes on f oot from Shinjuku
9,044.04㎡（2,735.82 tsubo ）Station, and is surrounded by business andcommercial facilities such as Takashimaya（Land） Ownership
Times Square and Head Office of JR East, etc.
（Bldg） Ownership
・After the completion of the artif icial ground,currently under construction, both sides of the¥ 12,300 mln
station will be connected, f urther enhancing
the location’s convenience as a businessconcentrated area.
Jun. 25, 2008
Shibuy a-ku, Tokyo

DS Investment Y K・With the total floor area of approx. 8,900 sq.
meters, the standard f loor area of approx. 800
sq. meters, and “individual” air conditioning
sy stem, etc.

Location

Shibuy a-ku, Toky o【 Features
Features】】

Floor

4,463.86m 2（1,350.31 tsubo）

Ty pe ofOwnership(Land) Ownership(Bldg) Ownership

・Located at 5 minutes walk f rom
Shibuy a Station, f acing “Dogenzaka
Street” which is one of the mostpopular streets in Shibuya area.

AcquisitionPrice¥ 7,660 mln

Date ofSep. 26, 2008
Acquisition
Seller

Nomura Real Estate
Dev elopment Co., Ltd.

4. Fund Management Results・Completed in 1999. With ceilingheight of 2600mm, officeautomation f loor, “individual” airconditioning system, etc.
・ A multi-tenant building. 1st and2nd f loors are occupied by a bank,and others are mainly tenants withretail customers.

20

New Acquisitions (3)Iwamoto-cho Toyo Building

Location
Floor
Acquisition
Price
Date of
Acquisition
SellerCentral Kyobashi Building¥6,020 mln
Jun. 25, 2008
Metropolitan Investment 3 GK

Chuo- ku,Tokyo
2,303.96㎡（696.94 tsubo）¥2,550 mln
Jun. 25, 2008
DS Investment YK

Sunworld Yotsuya Building

Central Shintomicho Building

Location
Floor
Acquisition
Price
Date of
Acquisition
SellerLocation
Floor
Acquisition
Price
Date of
Acquisition
SellerChiyoda-ku,Tokyo
5,367.28㎡（1,623.60 tsubo）

Chuo- ku,Tokyo
2,777.61㎡（840.22 tsubo）

Location
Floor
Acquisition
Price
Date of
Acquisition
Seller

¥1,750 mln
Jun. 25, 2008
DS Investment YK

4. Fund Management Results

Shinjuku- ku,Tokyo
2,367.51㎡（716.17 tsubo）¥778 mln
Jun. 25, 2008
DS Investment YK

21

New Acquisitions (4)Toshin Meguro Building

Nomura Nishi-Umeda Building

Location
Floor
Acquisition
Price
Date of
Acquisition
SellerMeguro-ku,Tokyo
1,595.27㎡（482.56 tsubo）¥1,340 mln
Jun. 25, 2008
DS Investment YK

EME Hakata Ekimae Building
Location

Kita-ku, Osaka City

Floor

8,036.71m 2 (2,431.10 tsubo）

Ty pe ofOwnership(Land) Ownership(Bldg) Ownership

Acquisition ¥ 5,660 mln
Price

Location
Floor
Acquisition
Price
Date of
Acquisition
SellerHakata-ku, Fukuoka City
10,961.34㎡（ 3,315.80 tsubo）【 Features
Features】】
・Located i n Umeda area, which is therepresentati ve busi ness and commercial
district of Osaka City. Adj acent to Osaka
Stati on, Kita-Shinchi Station, and NishiUmeda Station.

・ Possible to recei ve benefits from

Date ofSep. 26, 2008
Acquisition

development of surrounding areas, as bothoffice and commercial development
projects are upcomi ng (rebuilding plan ofHankyu Department Store andredevelopment plan of Umeda North Yard
are scheduled in this area).

Seller・Completed in 1993. With ceiling height of

Nomura Real Estate
Dev elopment Co., Ltd.

¥6,750 mln

2580mm, “indi vidual” air conditi oning
system, office automation floor, etc.

Jun. 27, 2008
GE Real Estate Corporation

4. Fund Management Results

22

（Reference
Reference）） New Acquisitions after 11th Fiscal Period
PMO Nihonbashi Honcho

Location
Floor
Acquisition
Price
Date of
Acquisition
Seller

Nomura Sapporo Building

Chuo- ku,Tokyo
3,507.37㎡（1,060.97 tsubo）¥5,000 mln
Nov. 5, 2008
Nomur a Real Estate Devel opment(Tantative Name)NOF Nagoya Fushimi Building (Scheduled Acquisition)

Location
Floor
Acquisition
Price
Date of
Acquisition
SellerLocation
Floor
Acquisition
Price
Date of
Acquisition
Seller¥5,300 mln
Nov. 5, 2008
Nomur a Real Estate Devel opment

NOF Tenjin-Minami Building (Scheduled Acquisition)

Location
Floor
Acquisition
Price
Date of
AcquisitionNaka-ku, Nagoya City
5,216.89㎡（1,578.10 tsubo）¥4,050 mln
Oct. 2009 (scheduled)
SHIMIZU CORPORATION

Kita- ku, Sapporo City
9,603.81㎡ （2,905.15 tsubo）

SellerChuo- ku, Fukuoka City4,603.61㎡（1,392.59 tsubo）¥3,750 ～ 4,100 ml n
The date to be mutuallyagreed by March 2009 between the Fundand the Seller
Global Investment Partners I LLC.

(Note) the Fund will acquire the Property on either December 26, 2008, or March 27, 2009 depending on the seller’s leasing status (occupancy rates andaverage rents, etc.) at each timing, accordin g to the agreement on purchase and sale of the trust beneficial interest. As the Property’s profitability may vary
upon leasin g status, the acquis ition price will be determined within the above-mentioned range.

4. Fund Management Results

23Diversification of Tenants

Top 10 Tenants (by Space)

Diversification in Business (by Space)
As of Oct. 31, 2008
Weight in
portfolio(%)

Wei ght fromprev ious
term (%)(Not e 2)

42,084.11

10.0

10.9

34,616.84

8.3

9.0

18,218.17

4.3

4.7

3,813.62

0.9

1.0

255.150.1

0.1

6,547.74

1.6

1.7

8,821.24

2.1

2.3

Dec. 31, 2008755.690.2

0.2

Feb. 7, 2018

9,062.04

2.2

2.3

May 31, 2011574.11

0.1

0.1

Dec. 31, 2009

1,140.85

0.3

0.3

Nov. 30, 2009

1,847.63

0.4

0.5

Mar. 31, 2009

2,834.48

0.7

0.7

Nov. 30, 2013

4,709.00

1.1

1.0

Nomura Osaka Bldg. Nov. 30, 2013345.370.1

0.1

Nov. 30, 2013

1,266.19

0.3

0.3

Apr . 30, 2009

4,065.64

1.0

1.1

F eb. 28, 2010

283.020.1

0.1

Mar. 31, 2013

4,160.94

1.0

1.1

145,401.83

34.7

Industry

Property

Expir y ofcontr act

Leasedspace（㎡）

Flagship Prope rties
Private Compan yReal Estate

JAL Bldg.

Mar. 31, 2015

2

OMRON Corp oration

Electr onic
Devices

3

XYMAX AXISCORPORATION

Tenant1

4

FUJITSU LI MITEDO mr on Kyoto
Mar. 29, 2021
Center Bldg.
NOF T oyo-cho
Real EstateNov. 30, 2014
Bldg.
NOF T echnoport
Jul. 31, 2009
Kamata Center Bldg.
Electr onic
Faret Tachikawa
Dec. 31, 2009
Devices
Center Square
NOF Shin-Yokohama
Sep. 30, 2010
Bldg.
Secom Medical Bldg. F eb. 28, 2025

5

6

7

8

9

10

SECOM Co ., Ltd.
JCB Co., Lt d.

Nomu ra Facilities Co., Ltd.

Nom ura Real Estate
Develo pment Co., Ltd .

SOM PO JAPAN
INSURANCE INC.
KYORIN CO., L TD.
Total

Ser vices

F inancing

Real
EstateReal
EstateInsurance

Wholesale

NOF Sendai
Aoba-dori Bldg.
JCB Sapporo
Higashi Bldg.
Shinjuku
Nomura Bldg.
NO F Utsunomiya
Bldg.
NomuraYotsubashi Bldg.
NomuraHiroshima Bldg.
Shinjuku
Nomura Bldg.

NomuraYotsubashi Bldg.
Shinjuku
Nomura Bldg.
NomuraHiroshima Bldg.
NOF Sur ugadai
Plaza Bldg.

As of Oct. 31, 2008

Other 20
Businesses
15.5%

Banking 2.5%

Serv ices
19.2%

Financing 3.5%

Total

Retail 4.2%
Real Estate 4.3%

676

Tenants

Insurance 4.3%
Wholesale 7.6%

IT
14.9%

Airline
10.6%

Electronics
13.5%(Note) Broken-down by business of the sub-lessees in case of sub-lets.

Stable (Mid-to-Long Term) Contracts
Mid-to-long term contracts expiring after
three years from now

z Based on floor space： 31.431.4％％

z Based on contract rent ： 23.4
23.4％％
As of Oct. 31, 2008
4. Fund Management Results

24

Results of Asset Management Sector

Changes in Average Unit Rent*1

Changes in NOI Return of Portfolioz Ratio of change betw een 9th and 10th periods[Changes in NOI Return of Portfolio (%)]

NOI of Portfolio

Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

Apr.
2006

Oct.
200 6

Apr.
200 7

Oct.
200 7

Apr.
200 8

Oct.
200 8

Average for
entire portfolio

Average for Tokyo
metropolitan properties

7.2

6.2

6.1

6.1

5.9

6.0

5.7

5.8

5.7

5.7

(37 properties held at
the 9th periodperiod -end)(excluding bldgs
with longlong -term fixed contracts* 2)

+0.4%

+1.5%

[Breakdown by the number of properties held at each Period-end (%)]
15 for 1st Period
18 for 2nd Period
19 for 3rd Period
23 for 4th Period
28 for 5th Period
30 for 6th Period
31 for 7th Period
34 for 8th Period

7.2

6.5

6.7

6.6

6.6

7.1

6.9

7.0

7.1

7.4

6.2

6.3

6.4

6.3

6.8

6.7

6.7

6.8

7.1

*1 Average Unit Rent: Average of monthl y rent and common area charges prescribed inlease contracts as of period-end.

6.1

6.2

6.1

6.4

6.3

6.4

6.4

6.6

*2 JAL Building and Secom Medical Building.

6.1

6.0

6.2

6.1

6.2

6.3

6.5

5.9

6.1

6.0

6.1

6.1

6.3

6.0

5.9

6.0

6.0

6.2

5.7

5.8

5.9

6.0

5.8

5.8

6.0

37 for 9th Period
46 for 10th Period

5.7

z Changes in average unit rent
(Average initial r ent for portfolio at period- end = 100)
110.0
108.0

1st Period 15bldgs

2nd Period 18bldgs

3rd Period 19bldgs

4t h Period 23bldgs

106.0

5th Period 28bldgs

6t h Period 30bldgs

7th Period 31bldgs

8t h Period 34bldgs

5.9
5.7

9th Period 37bldgs

104.0

z Main factors for change in NOI between 9th and 10th periods(based on 34 properties held at the beginning of 9th period)•

Increase of rent/common service f ees: + ¥139 mln (+1.3% from prev ious
period) (rent increase f rom tenant turnover / lease renewals)•

Decrease in repairs and maintenances: - ¥106 mln (-26.4% f rom previous
period)

102.0
100.0
98.0
96.0
1st
Period2nd
Period3rd
Period4th
Peri od

4. Fund Management Results

5thPeriod6th
Peri od

7th
Period8th
Period9th
Period10t hPeriod25

Increase in Rent of Portfolio
Changes in Portfolio Occupanc y Rate
9th Period

100.0%

Rent before and after Upward Revision

10th
10th Period* Change = ((Rent of renewed contracts / rent of pr evious contracts) – 1) x 100(Including common area char ges)

97.3%
95.0%

97.6%

97.2%

10.0%
8.0%

Average Change

+6.6%

＋6.4%

+5.7%

+6.1%

Central Tokyo

Suburban Tokyo

Other Cities

12,687㎡

2,959㎡

141㎡

6.0%

9th Period
Average Change+ 8.6％

4.0%
90.0%

85.0% Nov. 2007

Central Tokyo
Suburban Tokyo

2.0%

Other Cities
Average

0.0%

Apr. 2008
End of
9th Period

Oct. 2008
End of10th Period

Results of Contract Renewals (number of renew als)
100%

4.0%

6.5%

1.9%
14 .6 %

Up

54.3% 50.5%

5 2.0%
69.6%

46.9%

Dow n

* Change = ((Rent of move-in / rent of move-out) – 1) X100 (Including common ar ea char ges)
25.0%
20.0%
15.0%

+19.4%

Average Change＋3.8%

9th Period
Average Change+ 18.9％

10.0%

40%

5.0%
70 .0 %
64.7%
44.8% 48.4%

4 4.0%
23.9%

4 1.2%

83.3%
72 .9 %

20%

Flat

32.9%

60%

Rent of the Same Space before Move-out and after Move-in

21 .0 %

80%

Space subject
to revision

52.4%

5 6.9%

0.0%-5.0%-10.0%-15.0%-11.3%
Central Tokyo

Suburban Tokyo

Other Cities

Move-ins

2,219㎡

2,605㎡

3,540㎡

Move-outs

3,924㎡

1,334㎡

3,648㎡

14.8% 12 .5 %9.0%
2 .4 % 0 .9 % 1.1%
0.7% 2.0%0%
9th 10th
2nd 3rd
4th
5th
6th
7th
8th
Number of 1st
Renewed Period Period Period Period Period Period Period Period Period Period
contracts
50
46
54
48
100
85
116 95145 102-0.7%

4. Fund Management Results

26End--ofEnd
of--Period Appraisal Value

Appraisal Values at 10th Period-End

Increase in Appraisal Values(¥mln)

Central Tokyo(20 bldgs)

500,000

9th Period
End
Appraisal
Value
(¥mln
mln)*
)*

10th
10
th Period
End
Appraisal
Value
(¥mln
mln))

Change267,058

267,098+ 0.0%

436,948
399,602400,000
340,383
294,037

300,000

261,120
219,380
187,290

200,000

Suburban Toky o(10 bldgs)

55,81354,372366,938- 2.6%

127,120

151,500

100,000

Other Cities(16 bldgs)

121,289

Total Portf olio
(46 bldgs)

444,160

115,478- 4.8%
0436,948- 1.6%

1st
Period2nd
Period3rd
Period4th
5th
Period Period

6thPeriod7th
Period8th
Period9th
10th
Period Period

Changes in Unrealized Ga ins/Losses of Portfolio◇ Please refer to “Appendix” for details on individual properties.

* Appraisal value at acquisition is added for property acquired in the 10th period.

(¥ mln) (Appraisal Value at Period-End – Book Value)
100,000

Total Appraisal Value¥ mln

436,948

Total Book Value¥ mln

361,979

Total Unrealized Gain/Loss¥ mln

74,968

Unrealized Gain/Loss per Unit¥

245,700

80,00075,084

34,587
19,21820,000(For Reference) Net Asset per Unit
BPS (Book Value)¥

625,031

NAV (Based on Appraisal Value)¥

870,7310-20,000

74,96858,25260,00040,000* Unrealized gain/loss: Appraisal Value – Book Value

82,662

30

-315

1,883

1st
Period2nd
Period3rd
Period4. Fund Management Results

7,813

4th
5th
Period Period

6thPeriod7th
Period8th
Period9th
10th
Period Period

27

Move--ins and MoveMove
Move-outszSpace occupied by move-ins and vacated by move-outs

Mov e-ins

Move-ins

8,365 ㎡ (2,530 tsubo) : 2.0% of weighted averageof total floor spaceMove-outs 8,906 ㎡ (2,694 tsubo) : 2.1% of weighted averageof total floor space⇒ Change 541 ㎡ (163 tsubo) : More move-outs than move-ins

Past Tenant Change Rate (Average of the Portfolio)
Mov e-ins

Mov e-outs

6.0%
5.4%

4.3%

4.0%

2.0%
2.0%

2.4%

2.0%

2.0%

-3,924 ㎡-1,705 ㎡

Suburban Toky o+2,605 ㎡-1,334 ㎡+1,271 ㎡

Other Cities+3,540 ㎡-3,648 ㎡-108 ㎡

10th Period Status (Refers Only to Buildings with change)
2,116

（㎡）

1,200

～
～

Move-ins

600

200

-4.3%

-1,000-1,2004. Fund Management Results

21

EME Hakata Bldg

-800

Nomur a Hiroshima Bl dg-3.0%

Hiroshima T atemachi NOF Bldg

- 3.5%-600

NOF Kobe Kaigan Bldg

- 3.0%-2.1%- 2.3% -2.3%

Nomur a Yotsubas hi Bl dg
Nomur a Os aka Bldg
NOF Midosuji Bldg

-1.9%

SORA Shin-Os aka

-400
-1.7%

NOF Nagoya Yanagibashi Bldg

-2.0%

-200

NOF Utsunomi ya Bldg

-0.6%

Kita-Sanjo Bldg

10th
Per iod

Sappor o North Plaz a

9th
Per iod

NOF Yokohama Nishiguchi Bldg

8th
PeriodFaret T achikawa Center Square

7th
PeriodNOF Technoport Kamata Bldg

6th
PeriodNOF Minami Shinj uku Bldg
Central Kyobas hi Bldg

5th
Per iod

Hatchobori NF Bldg

4th
Per iod

Shinjuku Sanshin Bldg
Tennozu Park Side Bldg

3rd
PeriodNOF Nihonbas hi Honc ho Bldg

2nd
PeriodShinjuku Nomura Bl dg

0
1st
Period

-6.0%+2,219 ㎡

400

0.0%

-4.0%

Central Tokyo

800

1.2%

0.9%

Change

1,000

3.8%

4.0%

Mov e-outs

Move-outs

28End--ofEnd
of--Period Financial Status (1)10th Fiscal Period Financial Results

List of Lenders (Total 29 Financial Institutions)(¥mln)z Issued Short-term Bonds
Lender・ Amount of issuance ： ¥15 bln
Date of issuanceTotal Am ountof Debt
LenderRem aining
26,845
M itsui Life Insurance

Bank of Tokyo-M itsubishi UFJ： June 24, 2008

Redemption date ： September 24, 2008z Borrowings
・ Procured ¥31.1 bln for acquisition
・ Refinancing of total ¥24 bln

T otal Am ountof Debt
LenderRem aining
4,000
Keiyo Bank

Sumitom o M itsui Banking Corp.

19,525

Tai yo Life Insurance

4,000

Chugoku Bank

Mi tsubishi UF J Trust and Banki ng

10,410

Iyo Bank

3,500

Bank of Fukuoka

1,000

Sumitom o Trust & Banki ng Corp.

10,410Chiba Bank

3,000

M itsui Sum itom o Insurance

1,000
1,000

8,410

Chuo M itsui Trust and Banking

3,000

Sompo Japan Insurance Inc.

Developm ent Bank of Japan

6,000

Daido Life Insurance

3,000

Tok o
i Marine & Nichido Fire Insuranc e

1,000

Norinchukin Bank

5,000

Hachijuni Bank

2,500

Nippon Life Insurance Com pany

1,000

Dai-Ichi Mutual Life Insurance

5,000

Na tional M utual Insu ran ce Fe der ation o f
Agr icultua l Coop era tive s

2,000

Hyakuj ushi Bank

1,000

Sum ito m o L ife In su ra nc e C om pa ny

5,000

Hiroshim a Bank

1,500

T he 77 Bank

1,000

Nomura Trust and Banki ng

4,000

Yamanashi Chuo Bank

1,500

Total borrowings

137,600(Reference)

Investm ent Corporation Bonds

44,500

Diversification of Maturity
30z

Short-term vs. Long-term Debtsz（\ bl n）

Floating vs. Fixed Rates

Borrowings
25

Short-term Debts*¥49.1 bln
（27.0％）

Floating Rate
¥38.1 bln
（20.9％）

Fixed Rate*¥144.0 bln（79.1％）REIT Bonds

24.3 24. 8

20

19.0
17.5
16.0

15

15.5

10.0

10

Long-term Debts*¥133.0 bln（73.0％）

1,000

Mi zuho Corporate Bank・ Increase in number of institutional lenders（2 financial institutions）
institutions ）Interest-Bearing Debts

T otal Amountof Debt
Rem aini ng
1,000

8. 0

8. 0 8.0

6. 5 6.0
5

5.0

4.0

5.0

4. 5

0

*Including Investment Corporation Bonds*Including Interest -Rate Swaps

2008. 11～2011. 4

2011. 5～2013. 4

2013. 5～2015. 4

4. Fund Management Results2015. 5～ 2017. 4

2017. 5～2019. 4

2019. 5～2021. 42021. 5～2023. 42023. 5
～ 2025. 42025. 52027. 5～2027. 4 ～ 2028. 4

29End--ofEnd
of--Period Financial Status (2)Funding capabilities (as of December 10, 2008)

Duration and Borrowing Ratezz

Average remaining duration of long-term fixed debts(including REIT Bonds)

・Commitment line A （acquisition）： Amount of ¥20 bln （¥900 mln remaining ）4.9 yearsz

Commitment Lines

・Commitment line B （refinancing, etc.）： Amount of ¥20 bln （¥5 bln remaining ）Weighted average of interest rate of all the debts

1.68％
1.68
％

z

REIT Bonds
Aggregate amount ： ¥100 bln< Changes in average duration and all borrow ing rates oflong-term fixed interest borrowings >(year)
7

Av erage remaini ng durati on of borrowi ngs
Av erage borrowing rates

6

5.1

5
4

6.0

4.4
3.8

1

4.9

3.9

1.7
1.0

1.1

1.1

1.3

1.4

1.6

1.6

1.7

0
Apr.
2004

Oct.
2004

Apr.
2005

Oct.
2005

3.5

Aggregate amount ：

2.5
2.0

3.3

1.1

z Commercial Paper (CP)

Apr.
2006

Oct.
2006

Apr.
2007

Oct.
2007

Apr.
2008

¥30 bln

3.0

5.4

4.6

3
2

5.5

(%)

Oct.
2008

Ratings

1.5
1.0

Agencies

the FundCommercial Paper (CP)

0.5

R&I

AA-

a-1＋

0.0

S&P

A

A-1

Moody’s

A2

Prime-1

Steadily promoting prolongation of duration
4. Fund Management Results

30Appendix

List of Property(1)As of Oct 31, 2008
Property Nam e
Shi njuku Nomura Bldg
JAL Bldg
NOF Nihonbashi Honcho Bl dg
Tennozu Park Side Bl dg
Shi njuku Sanshin Bl dg
NOF Shibuya Koen-dori Bldg
Secom M edical Bldg

Central T okyo

NOF Shiba Bl dg
Nishi-Shinjuku Showa Bldg
Nomura Shibuya Dogenzaka Bldg
NOF Tamei ke Bl dg
Iwam oto-cho Toyo Bldg
NOF Shinagawa Konan Bldg
NOF Surugadai Plaza Bldg
Hatchobori NF Bl dg
NOF Kanda Iwamoto-cho Bl dg
Central Kyobashi Bldg
NOF Minam i Shinjuku Bldg
Central Shintomi cho Bldg
Sunworld Yotsuya Bldg

Location

Com pleti on

Ni shi -Shinjuku,
1978. 5
Shinj uku-ku
Hi gashi-Shinagawa,1996. 6
Shinagawa-ku
Ni honbashi Honcho,
1961. 4Chuo-ku( Exte nsion 1 968. 4)
Hi gashi-Shinagawa,1995. 1
Shinagawa-ku
Yoyogi,1974. 4
Shibuya-ku
Udakawa-cho,
1987. 9Shibuya-ku
Ni bancho,
2005. 2
Chi yoda-ku
Shiba,
1991. 3
Minato-ku
Ni shi -Shinjuku,
1982. 4
Shinj uku-ku
Dogenzaka,
1999. 3
Shibuya-ku
Akasaka,1959. 8Minato-ku
Iwamoto-cho,
1993. 6
Chi yoda-ku
Hi gashi-Shinagawa,1987. 11
Shinagawa-ku
Kanda Surugadai,
1997. 4
Chi yoda-ku
Hatchobori,1990. 10Chuo-ku
Iwamoto-cho,
1988. 7
Chi yoda-ku
Kyobashi ,1998. 9Chuo-ku
Sendagaya,
1986. 3
Shibuya-ku
Minato,1990. 3Chuo-ku( Exte nsion 1 992. 7)
Araki-cho,
1991. 11
Shinj uku-ku

F loors(Ground)50
26

Subtotal (10 properti es)

Suburban T okyo

Standard Floor
Space （㎡）

Air
Conditioning

Leasable
Space （㎡）
31,589.26

30,387.69

96.2%

81

1,262.37

Each 1/4 floor

42,084.11

42,084.11

100.0%

1

2,214.55

Each 1/6 floor

Room
Height （㎜）PML(Note 4)

Acqui si tion
Date

2,600

5%

2003. 12

2,700

6%

2005. 3
2003. 128

29,430.67

19,233.25

18,437.39

95.9%

12

2,615.23

Each span

2,650

14%

21

①43,893.46②17,587.30

18,051.60

18,051.60

100.0%

15

1,331.14

Each 1/4 floor

2,650

6%

2004. 289,044.04

6,663.64

6,316.08

94.8%

15

856.30Each span

2,420

13%

2008. 68

5,358.55

3,420.16

3,420.16

100.0%

3

442.38Each span

2,500

12%

2004. 978,683.73

8,821.24

8,821.24

100.0%

1

980.00Each span

2,500～2,7004%

2006. 97

11,425.20

8,165.10

8,165.10

100.0%

9

1,260.41

Each span

2,600

14%

2004. 511

①10,902.22② 5,858.26

5,663.19

5,663.19

100.0%

21585.99Each span

2,500

13%

2005. 1194,463.86

3,436.67

3,436.67

100.0%

6

399.37

Each 1/4 floor

2,600

12%

2008. 996,478.50

4,715.20

4,715.20

100.0%

13

519.06

Each span

2,500

17%

2005. 995,367.28

4,117.26

4,117.26

100.0%

7481.17

Each floor

2,575

13%

2008. 6

8

10,077.02

7,667.55

6,739.26

87.9%

4928.29Each floor

2,600

11%

2003. 128

5,782.27

4,160.94

4,160.94

100.0%

1

626.33

Each 1/2 floor

2,700

6%

2004. 29

① 3,799.40② 3,036.14

2,854.83

2,077.0972.8%

6388.87

Each 1/2 floor

2,600

12%

2007. 894,698.97

4,076.38

4,076.38

100.0%

8

480.07

Each floor

2,550

14%

2004. 28

2,303.96

1,720.05

1,720.05

100.0%

9250.32Each floor

2,500

15%

2008. 68

3,160.05

2,464.71

2,464.71

100.0%

5

327.66

Each floor

2,500

12%

2004. 68

2,777.61

2,467.14

2,467.14

100.0%

7

322.74Each 1/3 floor

2,500

15%

2008. 6

62,367.51

2,367.51

2,367.51

100.0%

1

229.47

Each 1/4 floor

2,500

12%

2008. 6

183,739.79

179,688.77

97.8%

225

18,218.17

18,218.17

100.0%

1

1,986.46

Each span

2,550

14%

2003. 12

13,652.45

13,652.45

100.0%

15

1,148.45

Each span

2,650

10%

2003. 12Subtotal (20 properti es)
Shinsuna,
NOF Toyo-cho Bldg
Koto-ku
Minam i-Kam ata,
NOF Technoport Kamata Center Bl dg
Ota-kuSekiguchi,
Toho Edogawabashi Bldg
Bunkyo-ku
Shim o-Meguro,Toshin M eguro Bldg
Meguro-ku
Gotenyama,
Crystal Park Bldg
Musashi no City
Akebono-cho,
Faret Tachikawa Center Square
Tachikawa Ci ty
Kawasaki -ku,
NOF Kawasaki Higashiguchi Bldg
Kawasaki City
Ni shi -ku,
NOF Yokohama Nishiguchi Bldg
Yokohama City
Kohoku-ku,
NOF Shin-Yokoham a Bldg
Yokohama City
Naka-ku,
Yokoham a Odori Koen Bldg
Yokohama City

# of
Leased Space Occupancy
Rate (Note 3) Tenants（㎡）

Total Floor Space(㎡ ) (Note 1, 2)
117,258.88(Entire building)①81,421.13②25,260.48

1989. 11

7

1990. 911

18,051.08

1993. 39

3,405.76

2,058.97

2,058.97

100.0%

7

235.47

Each floor

2,580

14%

2008. 3

1989. 991,595.27

1,610.07

1,610.07

100.0%

1

140.39Each floor

2,550

14%

2008. 6

1991. 10113,900.85

3,900.85

100.0%

10

193.93～590.35

Each floor

2,500

14%

2006. 2

1994. 12126,853.38

6,775.50

98.9%

16

1,099.32

Each 1/4 floor

2,600

10%

2003. 121988. 3

12

10,932.69

8,253.41

8,152.60

98.8%

27

684.62Each 1/3 floor

2,550

16%

2005. 6

1985. 109

10,055.13

6,817.76

6,511.78

95.5%

30

794.75

Each 1/8 floor

2,500

14%

2005. 5

1990. 10

9

11,149.99

8,074.83

8,074.83

100.0%

3

940.84Each span

2,500

17%

2003. 12

1989. 311

6,445.72

4,236.46

3,981.63

94.0%

14

418.39Each 1/3 floor

2,600

19%

2007. 973,676.35

72,936.85

99.0%

124

21,516.54(Exclusively o wn ed ar ea)① 6,462.19② 3,868.36①33,706.03② 6,865.80

Appendix32

List of Property(2)Property Name
Sapp oro No rth PlazaJCB Sapporo Higa sh i Bl dg
Kita-Sanjo Bld g
NOF Sendai Aoba -d ori Bl dg
NOF Utsunomiya Bldg
NOF Nagoya Yanag ibashi Bldg

Other Cities

Omro n Kyoto Center Bld g
SORA Shin -Osaka 21
NOF Midosuj i Bl dg
No mu ra Osaka Bld g
No mu ra Ni sh i-Umeda Bldg

Locatio n
Ch uo-ku,
Sapp oro C ity
Ch uo-ku,
Sapp oro C ity
Ch uo-ku,
Sapp oro C ity
Aoba -ku ,Send ai City
Baba -dori,
Utsunomi ya Ci ty
Na ka mura-ku ,Na goya City
Simog yo -ku ,Kyoto City
Yodo gawa-ku,
Osaka City
Ch uo-ku,
Osaka City
Ch uo-ku,
Osaka City
Kita-ku,
Osaka City
Ni shi-ku,
Osaka City
Ch uo-ku,
Kobe Ci ty
Na ka -ku ,Hi roshima City
Na ka -ku ,Hi roshima CityHa ka ta-ku,
Fukuoka City

# of
Lea se d Spa ce Occupancy（㎡）
Rate (Note 3) Tenan ts

Completio n

Floors(Groun d)

Tota l Floo r Space(㎡) (Note 1 , 2)

Leasable
Space （㎡）

1981. 812

18,842.51

1 3,63 5.8 6

12,237.48

89.7 %

196 6. 10

7

9,0 62.04

9,062.04

9,062 .04

1988. 39

7,4 61.25

5,060.45

4,922 .40

Standard Fl oor
Space （㎡）40

1,105.75

100 .0%1

7 96.3 1

97.3 %

17

5 92.5 5

Ai r
Con ditionin g
Each fl oor
Auxil iary

Ro om
PML
Hei ght （㎜） (No te 4)

Acqui si ti on
Date

2,580

1%

2006. 6

Each span

2,600

2%

2008. 2Each fl oor

2,500

1%

2007. 91968. 7

11

12,977.45

6,165.00

6,165 .00

100 .0%29

8 02.7 9Each span

2,480

8%

2005 . 11

199 9. 1210

10,479.63

5,887.40

5,746 .54

97.6 %

24

6 64.6 8Each span

2,700

5%

2003 . 12

1991. 312

7,3 63.25

4,655.74

4,249 .78

91.3 %

11

4 05.9 6Each 1/2 flo or

2,460

14%

2005. 92000. 7

11

34,616.84

3 4,61 6.8 434,616.84

100 .0%1

2,035.94

Each 1/1 6
floo r2,600

9%2007. 3

1994. 7

21

38,252.92

2 1,65 3.3 1

21,052.95

97.2 %

23

1,008.28

Each 1/4 flo or

2,700

9%

2008. 41974. 410

21,007.98

1 2,24 0.8 8

10,601.42

86.6 %

15

1,234.14

Each 1/4 flo or

2,600

13%

2005 . 11

198 3. 121223,522.82

1 6,97 7.7 916,977.79

100 .0%25

1,336.52

Each fl oor
Auxil iary

2,500

19%

2003 . 12

1993. 6

12

8,0 36.71

5,213.02

5,213 .02

100 .0%11

4 35.0 4

Each span

2,580

13%

2008. 9199 1. 11

15

16,845.87

1 1,55 8.6 810,948.21

94.7 %

16

7 97.3 5Each fl oor
Auxil iary

2,650

13%

2003 . 12

1998. 2

16

10,292.93

6,425.16

6,335 .08

98.6 %

35

5 28.4 3Each span

2,600

7%

2003 . 12

196 6. 11

12

8,2 06.91

4,428.13

3,874 .65

87.5 %

27

5 15.1 7

Each span

2,450

11%

2005 . 11

1976. 7

9

11,950.37

7,905.94

7,262 .41

91.9 %

15

1,047.54

Each fl oor
Auxil iary

2,450

11%

2003 . 12

1983. 7

11

10,961.34

7,585.43

7,090 .73

93.5 %

37

6 75.7 0

Each span

2,500

1%

2008. 6

Subtotal (16 properties)

173,071.67

166 ,35 6.34

96.1 %

327

Total (46 p roperti es)

430,487.81

418 ,98 1.96

97.3 %

676

No mu ra Yotsubashi Bldg
NOF Kobe Kaigan Bld g
Hi roshima Tatemachi NOF Bldg
No mu ra Hi ro shima Bl dg
EME Ha ka ta Ekimae Bldg

6.9%(Note 1) Total floor space is taken from the registry book.
(Note 2) Total floor space of the properties owned in compartment, except NOF Technoport Kamata Center Bl dg, is expressed as ① entire buildi ng, and ② portion owned by NOF.
(Note 3) Each Occupancy Rate indicates as of October 31, 2008.
(Note 4) Rate of PML (Probable Maximum Loss) for each building was calculated by Shi mizu Corporati on. 6.9% at the bottom field is for the entire portfolio.

Appendix33

Earnings by Property(¥000)
Property Name
Number of business days
Rental business revenues
Ren tal reve nu es * incl. common charges

Other rev enues
Rental business ex penses
Property m anagem ent cos ts
Taxes and dut ies
Utilit y ex pens es
Ins urance ex penses
Repairs and m aint enances
Other expens es
Depreciati on
Rental P rofi ts
Net Operat ing Inc om e (NOI)
Property Name
Number of business days
Rental business revenues
Ren tal reve nu es * incl. common charges

Other rev enues
Rental business ex penses
Property m anagem ent cos ts
Taxes and dut ies
Utilit y ex pens es
Ins urance ex penses
Repairs and m aint enances
Other expens es
Depreciati on
Rental P rofi ts
Net Operat ing Inc om e (NOI)
Property Name
Number of business days
Rental business revenues
Ren tal reve nu es * incl. common charges

Other rev enues
Rental business ex penses
Property m anagem ent cos ts
Taxes and dut ies
Utilit y ex pens es
Ins urance ex penses
Repairs and m aint enances
Other expens es
Depreciati on
Rental P rofi ts
Net Operat ing Inc om e (NOI)

Shinjuku
Nom ura B ldg.

184
1,97 0,481
1,77 3,610
196 ,870
823 ,614
206 ,255
163 ,812
217 ,298
3 ,134
38 ,885
66 ,472
127 ,756
1,14 6,866
1,27 4,622
Cent ral Ky obashi
Bldg.

129
55 ,020
49 ,813
5 ,207
15 ,212
3 ,65612
3 ,28383
115
2 ,731
5 ,32939 ,80845 ,138
K ita-Sanj o Bldg.

184
116 ,027
91 ,975
24 ,051
68 ,682
14 ,670
10 ,318
14 ,971348
1 ,982
1 ,840
24 ,551
47 ,345
71 ,896

JA L Bldg.*

184

146,285
606,239752,524
NOF Minam i
Shinjuk u B ldg.

184
105,452
89,765
15,68654,876
9,729
8,931
8,439
166
19,251
3,593
4,764
50,57555,340NOF Nihonbas hi
Honc ho Bldg.

S hinj uk u Sanshin NOF S hibuya
B ldg.
Koen-dori Bldg.

18 4909,298
863,959
45,338251,30378,00340,002
52,890
1,305
98
5,984
73,018657,994
731,012184
8 30,3 21
7 00,4 86
1 29,8 35
4 38,2 02
1 55,9 36
52,5 19
44,4 9018 9
21,8 40
7,04 3
1 56,1 82
3 92,1 19
5 48,3 01

129
241,774
221,411
20,363
43,772
11,30329
15,613
304
1,559
3,102
11,860198,001
209,861

Ce ntr al
Shinto mic ho Bld g.

Sunworld
Yotsuya Bldg.
129

NOF Toy o-c ho
B ldg. *1,82 5
18,5 42
20,3 67

34,506
216,517251,02312 949,541
39,671
9,869
17,051
4,086
13
4,688
106
1,088
631
6,437
32,49038,927

NOF Sendai
NOF Ut sunomiya
A oba-dori B ldg.
B ldg.

184
175,950
148,124
27,825
97,11425,12817,483
16,354
515
9,811
1,554
26,26678,835
105,102

Tennozu Park
Si de B ldg.

18 4
173,279
140,895
32,384
106,130
23,991
14,344
18,787
556
3,421
3,938
41,08967,149108,239

NOF Nagoya
Y anagibashi Bldg .

184
1 51,3 75
1 37,5 08
13,8 67
78,7 41
12,9 09
12,0 82
13,2 4233 92,77 856 336,8 26
72,6 34
1 09,4 60

184

Omron Ky ot oCenter B ldg. *184

161,317
310,045471,362184
371 ,644
342 ,543
29 ,100
74 ,824
16 ,034
24 ,144
15 ,218291
367
1 ,610
17 ,158
296 ,820
313 ,978S ecom Medic al
NOF S hiba B ldg.
Bldg.*

45,063
182,410
227,474

18 4
357,126
314,576
42,550113,749
20,562
23,712
26,975
540
3,523
2,402
36,034
243,376
279,411

NOF Te chn oport
Kamat a Cen ter Bldg .

Toho E dogawabashi
B ldg.

Tos hi n Meguro
B ldg. *184
411 ,124
350 ,695
60 ,428
199 ,585
51 ,125
35 ,267
48 ,647945
10 ,867
13 ,892
38 ,839
211 ,538
250 ,378

184
71,67657,321
14,35428,314
6,544
10
7,960
154
1,359
458
11,82743,361
55,189SORA ShinOs aka 21184
634 ,556
529 ,100
105 ,456
297 ,640
76 ,527130
76 ,751
2 ,088
9 ,386
7 ,318125 ,437
336 ,915
462 ,353

184

NOF M idos uj i
Bldg.

184
448,295
387,444
60,850210,783
38,83052,90235,205
887
8,552
5,436
68,968237,512306,480

12 9

3,561
22,981
26,542
Nom uraOs aka B ldg.

18 4546,064
448,02198,043229,623
66,27741,071
70,168
1,123
8,785
4,852
37,344316,440
353,785

Nis hi -S hinjuk u
S howa Bldg.

Nomura S hibuy a
Dogenz aka B ldg.

NOF Tameik e
Bl dg.

184
33 9,88 7
30 6,97 6
3 2,91 1
12 8,09 2
5 2,93 2
2 8,30 0
2 3,50 675 11,70 2
1,84 5
1 9,05 4
21 1,79 5
23 0,85 036
37,68934,8482,841
11,407
2,323
574
1,770
50
100
51
6,538
26,28232,820184
234,833
217,580
17,25387,844
18,33016,61819,562
302
5,873
5,565
21,592
146,988
168,581Crys tal Park
Bldg.

Faret Tac hikawa
Center Square

N OF Kawas aki
Higa shig uch i Bldg.

184
14 1,51 7
12 5,32 9
1 6,18 7
6 9,22 0
2 4,76 1
9,69 09,72 013 5
3,34 33
2 1,56 6
7 2,29 6
9 3,86 3

184
246,331220,030
26,300133,384
45,835
14,77335,665484
18
5,205
31,401
112,946
144,348

184
335,308
292,352
42,955
128,440
24,73018,43029,349
540
4,878
2,722
47,788206,868
254,656

Nomura Nis hiUm eda B ldg.

Nom uraYot subas hi B ldg.

36
4 1,85 7
3 6,89 4
4,96 2
1 8,94 0
3,47 758 73,95 078
3,86 8
6,97 8
2 2,91 6
2 9,89 5

184
318,645
281,758
36,886
189,075
43,891
29,68736,727761
31,082
1,916
45,009129,569
174,578

NOF Kobe
Kaigan Bldg.

184
191,970
155,874
36,095
112,072
24,046
16,09425,904
669
4,977
5,498
34,88079,897
114,778

Iwamo to-cho NOF S hinagawa NOF Surugadai Hatc hobori NF
NO F Kand a
Iwa mo to- cho Bldg.
Konan Bldg.
P laza B ldg. *Bldg.
Toyo Bl dg.
1 29
184
18 4
184
184
102 ,218
231,743
9 4,83 1
156,105
88 ,131206,837
8 4,79 6
139,502
14 ,086
24,9 06
1 0,03 4
16,60342 ,951
83,5 59
4 1,13 043,779
11 ,673
18,1 78
1 2,41 0
13,302
14
16,0 17
7,09 1
9,222
9 ,06020,2 00
7,13 7
8,966
208
500
24
233
1,324
80
17
940
2,373
1,35 9500
21 ,054
24,9 64
30,014
1 3,02 5
11,537
59 ,266
148,184
184,957
5 3,70 1
112,326
80 ,321173,148
214,972
6 6,72 6
123,864
NOF Y ok ohama
NOF ShinY ok ohama Odori S apporo Nort h
Nishiguchi Bldg. Y ok ohama Bldg.*
Koen Bldg.
P laz a1 84
261 ,459
230 ,154
31 ,304
87 ,667
24 ,304
18 ,281
20 ,930494
2 ,316
4 ,377
16 ,962
173 ,791
190 ,754

184

21,0 49
107,695
128,744

Hiroshima T atemachi
NOF Bldg

NomuraHi ros him a Bldg.

1 84
104 ,803
85 ,338
19 ,465
64 ,071
12 ,251
11 ,388
14 ,088306
3 ,056
6 ,022
16 ,958
40 ,731
57 ,690184
204,668
181,787
22,8 80
101,316
26,2 75
19,3 05
17,7 53518
14,1 22
2,392
20,9 49
103,352
124,301

18 4
116,035
93,06922,96571,883
12,4397,433
19,060
270
3,888
138
28,65244,15272,804184
33 0,38 5
27 9,43 1
5 0,95 3
20 0,73 1
3 8,27 1
2 9,78 1
3 9,72 1
87 6
3 3,14 5
1 2,56 0
4 6,37 3
12 9,65 4
17 6,02 8

EME Hakata
E kimae B ldg.

JCB Sapporo
Higas hi Bl dg. *184

35,12868,439103,568
Total 46
P ropert ies

12 7
138,693
120,637
18,05566,407
12,44519
14,396
379
6,353
3,531
29,282
72,285
101,568

13,925,429
12,493,338
1,432,090
5,790,802
1,387,207
971,039
1,084,225
26,729320,218
208,367
1,793,014
8,134,627
9,927,641* Detailed figures are not disclosed due to compelling reasons. However, they are included in "Total 46 Properties."

Appendix34

List of EndEnd-of
of--Period Appraisal Value
Acquis ition P rice

Central Tokyo

Property Name
S hinjuku Nomura Bldg
J AL Bldg
NOF Nihonbashi Honcho Bldg
Tennozu Park Side B ldg
S hinjuku Sanshi n Bldg
NOF Shibuya Koen-dori Bl dg
S ecom M edi cal Bl dg
NOF Shiba Bldg
Nishi-Shinj uku Showa Bldg
Nom ura Shibuya Dogenzak a Bldg
NOF Tamei ke Bldg
Iwamoto-cho Toyo Bldg
NOF Shinagawa Konan Bldg
NOF Surugadai Plaza Bldg
Hatchobori NF Bldg
NOF Kanda Iwamoto-cho Bldg
Centr al Kyobashi Bldg
NOF Mi nami Shi njuku Bl dg
Centr al Shi ntom icho Bldg
S unworl d Yotsuya Bl dg
Total Central TokyoNOF Toyo-cho Bldg

Other Cities

Suburban TokyoNOF Tec hnoport Kamata Cent er Bldg

Toho Edogawabashi Bl dg.
Toshi n Meguro Bl dg
Crystal Park Bldg
Faret Tachi kawa Center Square
NOF Kawasaki Higashi guchi Bl dg
NOF Yokohama Nishiguchi Bldg
NOF Shin- Yokoham a Bldg
Yokoham a Odori K oen Bldg
Total Suburban Tokyo
S apporo North Pl aza
J CB Sapporo Hi gashi Bldg.
K ita-Sanjo Bldg
NOF Sendai Aoba-dori Bl dg
NOF Uts unomiya Bl dg
NOF Nagoya Yanagibashi Bl dg
Om ron Kyoto Center Bldg.
S ORA Shin-Osaka 21
NOF Mi dosuji Bldg
Nom ura Osaka Bldg
Nom ura Nishi-Um eda Bldg
Nom ura Yotsubashi Bl dg
NOF Kobe Kaigan Bldg
Hiroshi ma Tatem achi NOF B ldg
Nom ura Hiros him a Bldg
E ME Hak ata Ekim ae Bl dg
Total Other Cities
Grand Total(¥ m ln)
38,73033,08020,60014,80012,30012,00011,50010,000
8,800
7,660
7,400
6,020
5,500
5,150
3,160
3,080
2,550
2,280
1,750
778
207,138
7,550
6,416
2,080
1,340
3,700
3,290
9,500
5,050
3,600
2,993
45,519
6,820
3,700
3,430
3,200
2,970
3,550
23,70019,251
12,900
6,410
5,660
3,940
3,280
2,100
1,930
6,750
109,591362,248

A ppraisal Val ueBook V alueat 10th Period End at 10th Period E nd(¥ ml n)39,25433,243
20,73913,471
12,32912,507
11,374
10,157
8,734
7,689
7,615
6,022
5,478
5,088
3,214
3,103
2,562
2,254
1,759
791
207,394
7,132
6,314
2,109
1,347
3,648
3,016
9,485
5,010
3,330
2,967
44,362
7,429
3,808
3,421
3,187
2,618
3,725
23,196
19,422
12,869
6,405
5,720
3,656
2,970
2,444
2,581
6,761
110,222361,979（Ａ）

Diffe rence be tween Bo ok Value and App raisal Va lue(¥ mln)72,60033,40027,40023,30012,60014,00011,60010,90010,100
7,660
8,280
5,880
6,970
7,300
3,190
3,920
2,590
2,980
1,650
778
267,098
9,030
7,820
1,830
1,210
4,200
5,660
9,800
7,682
4,450
2,690
54,372
7,268
3,470
2,780
3,310
3,490
3,670
22,00018,20014,00011,000
5,660
6,690
3,490
2,060
2,490
5,900
115,478
436,948（Ｂ）\ 74,9 68 mln

Appraisal Valueat 9th Period End

*

*
*

*
*
*

*

*

*

(¥ m ln)
72,60033,40027,40022,90012,30014,00011,60010,90010,400
7,660
8,470
6,020
6,980
7,260
3,210
3,900
2,550
2,980
1,750
778
267,058
9,020
7,790
2,080
1,340
4,290
5,660
10,300
7,933
4,530
2,870
55,813
6,949
3,770
3,020
3,430
3,570
3,820
24,20018,60014,90011,500
5,660
6,980
3,490
2,200
2,700
6,500
121,289
444,160

Difference between
9th and 10th Peri od(¥ mln)
400
300
- 300
- 190
- 140
-10
40
-20
20
40
- 100
40
10
30
- 250
- 130
-90
- 500
- 251
-80
- 180
-1,441
319
- 300
- 240
- 120
-80
- 150
-2,200
- 400
- 900
- 500
- 290
- 140
- 210
- 600
-5,811-7,212

Change
1.7%
2.4%
-2.9%
-2.2%
-2.3%
-0.1%
0.6%
-0.6%
0.5%
1.6%
-5.7%
0.0%
0.1%
0.4%
-12.0%
-9.7%
-2.1%
-4.9%
-3.2%
-1.8%
-6.3%
-2.6%
4.6%
-8.0%
-7.9%
-3.5%
-2.2%
-3.9%
-9.1%
-2.2%
-6.0%
-4.3%
-4.2%
-6.4%
-7.8%
-9.2%
-4.8%
-1.6%

* For these buildings acquired at t he 10th Period,
appraisal v alue is that of the t ime of acquisit ion.

（\ 24 5,700 / unit）（Ｂ）－（Ａ）

Appendix35

Map of Properties
01

02

Central Tokyo
01 Shinjuku Nomura Bldg.
02 JAL Bldg.
03 NOF Nihonbashi Honcho Bldg.
04 Tennozu Park Side Bldg.
05 Shinjuku Sanshin Bldg.
06 NOF Shibuya Koen-dori Bldg.
07 Secom Medical Bldg.
08 NOF Shiba Bldg.
09 Nishi-Shinjuku Showa Bldg.
10 Nomura Shibuya Dogenzaka Bldg.
11 NOF Tameike Bldg.
12 Iwamoto-cho Toy o Bldg.
13 NOF Shinagawa Konan Bldg.
14 NOF Surugadai Plaza Bldg.
15 Hatchobori NF Bldg.
16 NOF Kanda Iwamoto-cho Bldg.
17 Central Kyobashi Bldg.
18 NOF Minami Shinjuku Bldg.
19 Central Shintomicho Bldg.
20 Sunworld Y otsuy a Bldg.

Shinjuku Nomura Bldg

03

NOF Nihonbashi
Honc hi Bldg

JAL Bldg

04

06

Tennoz u Park
Side Bldg

NOF Shibuya
Koen- dori Bldg

22

25

26

NOF Technoport
Kamata Center Bldg

Chrystal Park Bldg

Faret Tachikawa
Center Square

38

42

43

SORA Shin-Osaka 21

Nomur a Yotsubas hi
Bldg

Suburban Toky o
21 NOF Toy o-cho Bldg.
22 NOF Technoport Kamata Center Bldg.
23 Toho Edogawabashi Bldg.
24 Toshin Meguro Bldg.
25 Cry stal Park Bldg.
26 Faret Tachikawa Center Square
27 NOF Kawasaki Higashiguchi Bldg.
28 NOF Y okohama Nishiguchi Bldg.
29 NOF Shin-Y okohama Bldg.
30 Y okohama Odori Koen Bldg.

Other Cities
31 Sapporo North Plaza
40 Nomura Osaka Bldg.
32 JCB Sapporo Higashi Bldg.
41 Nomura Nishi-Umeda Bldg.
33 Kita-Sanjo Bldg.
42 Nomura Y otsubashi Bldg.
34 NOF Sendai Aoba-dori Bldg.
43 NOF Kobe Kaigan Bldg.
35 NOF Utsunomiya Bldg.
44 Hiroshima Tatemachi NOF Bldg.
36 NOF Nagoy a Y anagibashi Bldg. 45 Nomura Hiroshima Bldg.
37 Omron Ky oto Center Bldg.
46 EME Hakata Ekimae Bldg.
38 SORA Shin-Osaka 21
39 NOF Midosuji Bldg.

NOF Kobe
Kaigan Bldg

Appendix36

Acquisition Channel of Properties
Acquisition
ChannelOriginally owned
by or developedby Nomura Real
Estate Group
Companies• Information fromor
• Intermediation *by Nomura Real
Estate Group
Companies

Key Properties
Acquired at Listing

Shinjuku
Nomur a Bldg.

Faret Tachikawa
Center Square

Key Properties Acquired after Listing

Tennoz u Park
Side Bldg.

Secom Medical Bldg.

10 Properties

Omron Kyoto
Center Bldg.

Cumulative Acquisition Price:¥ 117.6 bln
Nomur a Yotsubas hi
Bldg.

Nomur a Osaka Bldg.

Nomura Nishi-Umeda Bldg.

NOF Nihonbashi
Honc ho Bldg.

NOF Shinagawa
Konan Bldg.

JAL Bldg. *NOF Minami
Shinjuku Bldg.

Nishi-Shinjuk u
Showa Bldg.

Sapporo North Plaza

23 Properties
Cumulative Acquisition Price:¥ 155.1 bln

NOF Toyo-cho Bldg.

NOF Kobe
Kaigan Bldg.

NOF Yokohama
Nishiguc hi Bldg.

NOF Sendai
Aoba- dori Bldg.

NOF
Midos uji Bldg.

Hatchobori NF Bldg.

Information fromsources outside
Nomura Real
Estate Group

13 PropertiesNOF Shiba Bldg.

NOF Shibuya
Koen- dori Bldg.

NOF Kawasaki SORA Shin-Osaka 21
Higashiguchi Bldg.

Cumulative Acquisition Price:¥ 89.4 bln
Appendix37

Fund Summary

1st Perio dApril 200 4

2nd Pe riod
October 200 4

3rd Period
April 2005

4t h Perio d
Oct ober 2005

5th Period
April 20 06

6th Period
October 2006

7th P eriod
April 2007

8th Period
Octo ber 2007

9t h Perio dApril 2008

10th Pe riod
October 2008

Total Asset s
Interest-b earing Liabilities
LTV (Based on Tota l Assets)
Unith old ers' Capital
Outstanding Units Issue d
Net Assets
Net Asset s p er Unit
End -of -Period Closing Unit PriceMarket Ca pitalizat io n

¥ mln
¥ mln
%
¥ mln
un it
¥ mln
¥
¥
¥ mln

147 ,946
61 ,000
41.2
71 ,706
148 ,600
73 ,233
492 ,820
645 ,000
95 ,847

17 3,545
6 4,500
37.2
9 2,168
18 4,650
9 4,774
51 3,266
76 7,000
14 1,626

208,00 3
96,50 046. 4
92,16 8
184,65 0
94,84 9513,67 2
758,00 0139,96 4239, 067
93,0 00
38 .9
124, 610
229, 970
128, 094
557, 004
782, 000
179, 836

26 8,559
12 0,000
44.7
12 4,610
22 9,970
12 8,206
55 7,492
99 8,000
22 9,510

288 ,060
106 ,000
36.8
156 ,767
265 ,903
161 ,004
605 ,499
991 ,000
263 ,509

3 15,402
1 30,000
41.2
1 56,767
2 65,903
1 61,221
6 06,315
1,4 90,000
3 96,195

326,71 1
140,00 042. 9
156,76 7
265,90 3
161,27 2
606,51 0
1 ,160,00 0
308,44 7353, 730
165, 700
4 6.8156, 767
265, 903
161, 267
606, 488
826, 000
219, 635

40 1,684
18 2,100
45.3
18 5,455
30 5,123
19 0,711
62 5,031
55 1,000
16 8,122

Operating Revenues
Operating Income
Net Income
Total Ca sh Distribution
Cash Dist ribution per Unit

¥ mln
¥ mln
¥ mln
¥ mln
¥

4, 531
2, 313
1, 526
1, 526
10 ,273

6,656
2,930
2,606
2,606
1 4,114

7,10 6
3,22 82,68 1
2,68 1
14,52 08, 6414, 1113, 4843, 484
15,1 50

9 ,8104 ,558
3 ,596
3 ,59615 ,638

10 ,739
5 ,182
4 ,2294 ,22915 ,905

11,090
5,137
4,466
4,453
16,75011,96 85,72 5
4,48 6
4,49 816,91 812, 183
5, 8234, 4994, 49916, 923

13 ,925
6 ,932
5 ,255
5 ,255
17 ,225

Total Portfolio (Based on A cqu isition Price )Number of Prope rties
Leasable Spa ce
Number of Tena nts
Occu pancy Rate

¥ mln

%

127 ,26015
180,793 .50
264
93.3

15 1,540
18
194, 673.65
277
94.4

184,62 0
19
236 ,904.6 7
28 7
98. 1

210, 12023
2 61,428 .50
357
97 .3

24 0,82028
293,46 4.10
467
98.4

259 ,14030
316,13 2.49
512
98.2

2 82,840
31
350, 712.00
517
98.5

292,40 934
36 2,733.6 2
53 3
97. 9

317, 44037
3 95,330. 99
583
9 7.6

36 2,24846
430,48 7.81
676
97.3

%
%
%
%
%
x

1.1
2.8
2.1
5.2
49.5
11 .45

1.6
3.1
2.8
5.6
54.6
11.05

1. 4
2. 8
2. 8
5. 7
45. 6
9.9 5

1 .5
3 .1
2 .7
5 .4
53 .6
10 .08

1.4
2.9
2.8
5.7
47.7
7.92

1.5
3.0
2.7
5.4
55.9
8.35

1.5
3.0
2.8
5.6
51.1
7.88

1. 4
2. 8
2. 8
5. 5
49. 4
6.4 9

1.3
2.7
2.8
5.6
4 5.6
6 .22

1.4
2.7
2.8
5.6
47.5
6.06

Net Asset Value per Unit ( Based on Appraisal Value)

¥ mln
¥ mln
¥ mln
¥
¥

127 ,089
127 ,12030
202
493 ,023

15 1,815
15 1,500-315-1,707
51 1,559

185,40 6
187,29 0
1,88 3
10,19 9523,87 2

211, 566
219, 380
7, 81333,9 75
590, 979

24 1,901
26 1,120
19 ,218
83 ,572
64 1,064

259 ,449
294 ,037
34 ,587
130 ,074
735 ,574

2 82,130
3 40,383
58,252
2 19,075
8 25,390

291,85 3
366,93 8
75,08 4282,37 4
888,88 4316, 999
399, 602
82, 602
310, 649
917, 138

36 1,979
43 6,948
74 ,968
24 5,700
87 0,731

NOI
Rate of NOI (p.a .)Dep reciation
Cap it al ExpendituresFFO
FFO per Unit

¥ mln
%
¥ mln
¥ mln
¥ mln
¥

3, 3507.2
666
222, 193
14 ,757

4,451
6.2
949
511
3,555
1 9,255

4,97 0
6. 1
1,02 348 4
3,71 920,14 26, 125
6 .1
1, 2291, 0164, 727
20,5 59

6 ,952
5.9
1 ,399934
5 ,034
21 ,889

7 ,5916.0
1 ,471588
5 ,73921 ,585

7,763
5.7
1,478
757
5,985
22,5098,28 6
5. 8
1,51 8
1,25 2
6,03 922,71 48, 572
5.7
1, 601
1, 3466, 13423, 069

9 ,927
5.7
1 ,793
1 ,552
7 ,087
23 ,228

Ret urn on Asset s (ROA)(a nnualized)
Ret urn on Equity (ROE)(a nnualized)
Cap it al-Asset Ratio
Deb t-Service Co vera ge Ra tio （DSCR）
End-of-Period To tal Book Value
End-of-Period To tal Appraisal Va lue
Total Late nt Profit an d Loss
Laten t Pro fit and Loss p er Unit㎡

Appendix38

Cash Flow Statement
9th Fiscal Period

10th Fiscal Period

Nov 1, 2007 - Apr 30, 2008

May 1, 2008 - Oct 31, 2008(¥0 00)(¥000)

4,500,953
1,601,989
2,917
32,295▲ 32,898
1,175,471
10,174▲ 275,442▲ 70,490
349,217150,348▲ 181,816▲ 82,363
7,180,357
32,898▲ 1,131,556▲ 1,237
6,080,462

5,256,83 1
1,793,14 7
10,53 738,49 0▲ 36,9 75
1,400,86 6
7,60 0▲ 94,6 88
309,377
83,88 3▲ 320,0 25
53,22 2
265,869▲ 19,1 82▲ 50,1 12
8,698,84 1
36,97 5
▲ 1,196,6 77▲ 1,8 57
7,537,28 2▲ 25,398,623▲ 1,334,962▲ 18,086
1,013,767▲ 1,063,049
1,104,251▲ 25,696,703▲ 11,665,0 65▲ 33,230,0 48▲ 1,900,9 04▲ 16,7 98
714,359▲ 647,0 41
1,848,78 9▲ 200,0 50▲ 45,096,7 58

24,700,000▲ 23,500,000
19,981,250
23,500,000▲ 19,000,000▲ 4,497,891
21,183,359

34,100,00 0▲ 14,700,0 00
14,954,20 7▲ 35,000,0 00
21,000,00 0▲ 4,000,0 00
28,688,25 3▲ 4,498,7 79
40,543,68 1

1,567,118
34,016,503
35,583,622

2,984,20 4
35,583,62 2
38,567,82 6

I. Cash Flow of Operating Activ ities
Income before income taxes
Depreciation
Amortization of long-term p repaid expenses
Amortization of corp orate bon d issuance co sts
Interest incom e
Interest expenses
Loss on dispo sal of tangible assets
Change in rental re ceivables ( ▲increase)
Change in c ons umption tax refundable （▲ increase ）Change in trade accounts payable （▲d ecrease）
Change in other accounts payable （▲d ecrease）
Change in tax receivable（▲decrease）
Change in rent received in advance （▲ decrease）
Change in security deposits rece ived （▲decrea se）
OthersSubtotalInterest received
Interest paid
Taxes a nd dutie s
Net c ash provided by operating activities
II. Cash Flow of Inv esting Activities
Purcha se of tangible assets
Purcha se of tangible assets in trust
Purcha se of intangible assets
Tenants' security deposits paid
Security deposits re ceived
Security deposits in trust paid
Security deposits in trust received
Security deposits paid
Net c ash used in investing a ctivities
III. Cash Fl ow of Fi nancing Activ ities
Procee ds from short-term debt
Repayme nt of short-term debt
Proc eeds from s hort- term investment corporation bonds
Redemption of s hort- term investment corporation bonds

Procee ds from long-term debt
Repayme nt of long-term debt
Procee ds from issua nce of investment units
Cash d istribution to unitholders
Net c ash provided by financing activ ities
IV. Change in Cash and Cash Equivalent （ ▲ decrease）

V. Starti ng Balance of Cash and Cash Equivalent
VI. Ending Balance of Cash and Ca sh Equivalent

Appendix

39Unit Price and Market Capitalization (Dec. 4, 2003 – Dec. 10, 2008)

1,600,000
1,500,000
1,400,000
1,300,000

Market Capitalization (\ mln)

Unit Price (\)

As of December 10, 2008
Market Capitalizatio n :All-tim e Hig h Price :All-tim e Low Price :Market Capitalization\18 1,243 mln\1,560,000 m ln
\ 407,0 00 m ln

TSE REIT Index (Note )5th Public Offering\756,560

700,000

600,000

Unit Price
500,000

1,200,000
1,100,000

Initial Public
Offering

2nd Public Offering\588,000

3rd Public Offering\740,782

4th Public Offering\926,100

400,000

1,000,000
300,000

900,000
800,000

200,000
700,000
600,000

100,000

500,000
400,0000
2003/122004/3 2004/6 2004/92004/122005/3 2005/6 2005/92005/122006/3 2006/6 2006/92006/122007/3 2007/6 2007/92007/122008/3 2008/6 2008/92008/12(Note) TSE REIT Index on December 10, 2007 = NOF’s closing unit price on the same date (one year from December 10, 2007)

Appendix40Organization of the Asset Management Company

Corporate Profile
Shareholders’ Meeting[ Registered Trade Name ]Auditors*Compliance & Risk Management Group(Responsibilities)
Businesses relevant to compliance and risk
management.
Internal audit.

[ Date of Incorporation ]Executiv e
Director

January 24, 2003
Compliance
Committee

Compliance & Risk
Managemen t Gro up *[ Capital ]¥300,000,000

Office Managemen t
Div ision

Residence Managemen t
Div ision

Inv estment Committee

Acquisition
Group

Asset
Managemen t
GroupNomura Real Estate Asset Management Co., Ltd.

Board of Directors

Inv estment Committee

Fund
Managemen tGroupFinancial &Control Gro up(Responsibilities) (Responsibilities) (Responsibilities)

Acquisition
Group

Asset
Managemen t
Group

Fund
Managemen t
Group[ Number of Employ ees ]Financial &Control Gro up(Responsibilities)

 Businesses Businesses Businesses
 Fund raising.
relevant to due
relevant torelevant todiligence andmanagement,
management of  Accounting,taxes andacquisition ofmaintenanceportfolio,
liability
properties to be and sale ofdisclosure ofinvested.
properties in the information (IR). managementof NOF.
portfolio.
 Accounting,taxes andadministration of
NREAM.

[ Shareholder ]Nomura Real Estate Holdings Inc. (100%)(Note)
Responsibilities of Groups under Residence Management Division are
omitted because these groups are not engaged in management of NOF.

63 (including Directors)[ Description of Business ]Asset management business f or inv estment
corporations (J-REITs)◆Registered f or a financial instruments business:
Director of Kanto Local Finance Bureau No. 374◆Licensed for discretionary proxy in realty trading:
Minister of Land, Infrastructure and Transport
No. 18◆Licensed for real estate trading:Governor of Tokyo No. (2) 81679

NOF Management Division

Appendix41Below is a message announced jointly with the asset management company at the time of listing on December 4, 2003.

We, at Nomura Real Estate Office Fund Inc., believe that listingof Real Estate Investment Trust (REIT) serves to form a baseon which the nation can build their financial resources. The
long-term investment capital will contribute to stabilization of not
only the real estate market, but also the Japanese economy asa whole.
Many investors wish stable investment more than anything else.
Responding to such needs of asset building, we have set ourinvestment policy as being “stable over mid- to long-term”.
Wishing to make a contribution to the nation’s economic growth
in any way, we are determined to continue doing the best of ourability in our function to combine the private financial resources
directly with the real estates.
AN INVESTOR ORIENTED COMPANY
respecting the trust and expectation of the investors
Nomura Real Estate Office Fund, Inc.
(TSE code: 8959)
http://www.nre-of.jp/english/

Fund Manager: Nomura Real Esta te Asse t Management Co., Ltd.

This document has been prepared for the purpose of provision of information only, andshould not be construed as an offer, solicitation or commercial conduct of any natureassociated with any specific products. Investors wishing to purchase the investment
units of Nomura Real Estate Office Fund, Inc. should contact their own securities
brokers or dealers.
The forward-looking statements with respect to the future financial results contained inthis document should not be construed as a guarantee of the actual performance in the
future.
Although the information contained in this document is intended to be complete andthorough, there is no assurance of precision and safety of the same. Please note thatthe contents of this document is subject to change or cancellation without prior notice.
It is prohibited to make duplication, reproduction, distribution or use of any part or wholeof the information contained in this document without express prior written consent.